Deemed capital gain due to unutilized amount in CG account scheme
This query is : Resolved
Guest
Guest
(Querist)
31 August 2025
I had capital gain when I sold my flat in Aug 2021. I had opened capital gains account in July 2022 and deposited the capital gain ( after considering indexation which was valid that time). However I couldn't utilise this amount in last 3 years to purchase or construct new house. Consequently I need to now show this amount as Deemed capital gain.
In section CG, sub section 10 of ITR 2 when enter "No" against the question " Whether date of limitation/ withdrawal was before 23rd July 2024" system calculated tax at the rate of 12.5% which does not seem correct.
Am I missing anything here. Or since I sold property in Aug 2021, I have to select "Yes" against this question. In that case system calculated LTCG at 20%
In section CG, sub section 10 of ITR 2 when enter "No" against the question " Whether date of limitation/ withdrawal was before 23rd July 2024" system calculated tax at the rate of 12.5% which does not seem correct.
Am I missing anything here. Or since I sold property in Aug 2021, I have to select "Yes" against this question. In that case system calculated LTCG at 20%
04 September 2025
In your case, since the original sale occurred before July 23, 2024, the law is clear:
The correct tax treatment for property sold before July 23, 2024 (like August 2021) is that the long-term capital gain (after indexation) is taxed at 20% when such unused deposit becomes taxable as deemed capital gain. So, select 'yes' to the question.
The correct tax treatment for property sold before July 23, 2024 (like August 2021) is that the long-term capital gain (after indexation) is taxed at 20% when such unused deposit becomes taxable as deemed capital gain. So, select 'yes' to the question.
Guest
Guest
(Querist)
04 September 2025
Thank you Rambhia Sir. This really helps.
04 September 2025
You are welcome...
21 September 2025
Good luck....
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