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Capital gain accout scheme

qwerty123$ (Others) (31 Points)

29 July 2015

I HAD SOME CAPITAL GAINS DURING FY 2013-14. SINCE I COULD NOT FINALIZE INVESTMENT BY DUE DATE OF RETURN FLINING, I DEPOSITED THE ENTIRE RECEIPTS IN CAPITAL GAIN ACCOUNT SCHEME. SUBSEQUENTLY I INVESTED THE ENTIRE AMOUNT IN SEPT 2014.

WHILE FILING RETURN FOR 2013-14 I HAD SHOWN DEPOSIT IN CAPITAL GAIN ACCOUNT SCHEME.

NOW IN 2014-15 I NEED TO SHOW THAT I HAVE WITHDRAWN FROM CAPITAL GAIN ACCOUNT SCHEME AND HAS INVESTED BUT THE FORM ITR 2 HAS PROVISION TO SHOW CAPITAL GAIN ACCOUNT SCHEME WITHDRAWAL PERTAINING TO CAPITAL GAIN OF FY 2011-12 AND 2012-13 ONLY. HOW DO I SHOW MY GAIN OF 2013-14 AND ACCOUNT OF 2014 IN THE RETURN.

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9 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 29 July 2015

You may have to wait till next years form if I have undestood yr issue correctly.

1 Like

Z ( ) (2960 Points)
Replied 30 July 2015

Are you looking at

If so then I think you are referring to wrong portion. The one you are looking is for deemed capital gain. It is applicable when funds were not fully utilized for the purpose for which exemption was claimed. Kindly confirm it

1 Like

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 30 July 2015

YOu need not show any such thing in 14-15 return. What option you are seeing is as Z rightly pointed out is for amounts which have expired the time limits but not utilised for purchase of new asset. Now when you file for Ay 2016-17 if you have any amount out of teh amount deposited in the CGA scheme, which you have not utlised for new specified asset. You have to report in this section. Else, your capital gains assessment is complete if the return for 13-14 has been Processed.

2 Like

qwerty123$ (Others) (31 Points)
Replied 30 July 2015

Z: Yes thats true I am reffering to that portion only.

Rajagopalakrishnan R: Thanks. My only concern is how do the Income Tax authorities come to know whether and when I have actually used amount in the Capital Gain Account. Or do they take it as deemed coplaince if not reported in next two FY return in portion I am refferign to.

Thanks again.

1 Like

Z ( ) (2960 Points)
Replied 30 July 2015

You have to take permission from your AO in Form C for withdrawl.Thats how they will know. If after expiry of 3 years the amount remains unutilized then the balance amount in that account shall be deemed to be the capital gain in the previous year in which such time limit expires.

That pat you were referring to earlier was for this deemed capital gain.

Form C

https://www.incometaxindia.gov.in/forms/capital%20gains%20accounts%20scheme,%201988/103120000000007955.pdf

qwerty123$ (Others) (31 Points)
Replied 30 July 2015

THE BANK DID NOT ASK ME FOR ANY SUCH FORM C AT THE TIEM OF WITHDRWAL FOR PURCHASE OF NEW ASSETT.

qwerty123$ (Others) (31 Points)
Replied 30 July 2015

THE BANK DID NOT ASK ME FOR ANY SUCH FORM C AT THE TIEM OF WITHDRWAL FOR PURCHASE OF NEW ASSETT.

meenakshi (Head - Finance) (56 Points)
Replied 28 June 2016

Very true. I have been trying to get an answer to the same doubt.

The bank did not ask for any form for withdrawel of the amount in CGA scheme. I simply gave a letter stating that I have invested in another property for the amount kept in CGA and they returned my deposit.

Since I had invested in under construction property for the Capital gains amount and will get the said property only after 3 years, I cannot show the new property in my returns also.

So how do the IT authorities ensure compliance is my question.

Sumati