Deemed capital gain due to unutilized amount in CG account scheme

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If you deposited capital gains into a CG account but didn't use the funds within three years, it's now considered a deemed capital gain. For property sales made before July 23, 2024, the unused amount will be taxed at the standard long-term capital gains rate of 20%, even if the deposit was made later.

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%

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

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.

Guest

Guest (Querist)

04 September 2025 Thank you Rambhia Sir. This really helps.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

04 September 2025 You are welcome...

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

21 September 2025 Good luck....

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