Is it nessessary to close capital gain bank a/c ?
This query is : Resolved
11 February 2013
I had sold flat in Aug , 2011 . Gain from this sale was long term capital . I bought under construction flat in Oct 2011 & opened capital gain a/c in July 2012 . Now I have finished all money in this a/c by paying installments for above booked u/c flat .
For information , possession of this flat will happen sometime in 2015 .
Now I want to know is it compulsory to close this a/c as it require income tax officer signature ?
For information , possession of this flat will happen sometime in 2015 .
Now I want to know is it compulsory to close this a/c as it require income tax officer signature ?
11 February 2013
Sunil,
Since you have already exhausted the money in the CGA, there should not be any problem in receiving the AO's approval the closure of the account.
However, as you have mentioned that the possession of the flat will happen sometime in 2015 (which is more than 3 years from the date of sale of the flat), there is a possibility that AO may wish to deny you the benefit of 54F. In such as case you may rely on judgment of Madras High Court in the case of Commissioner of Income Tax v. Sardarmal Kothari
Since you have already exhausted the money in the CGA, there should not be any problem in receiving the AO's approval the closure of the account.
However, as you have mentioned that the possession of the flat will happen sometime in 2015 (which is more than 3 years from the date of sale of the flat), there is a possibility that AO may wish to deny you the benefit of 54F. In such as case you may rely on judgment of Madras High Court in the case of Commissioner of Income Tax v. Sardarmal Kothari
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11 February 2013
Is it important to file closing of capital gain bank a/c with AO as it has no funds ?
11 February 2013
Dear Sunil,
If you may refer to the text of the Capital Gains Account Scheme, 1988, Section 13(1) - Closure of Account:
"If a depositor desires to close his account, an application shall be made with the approval of the Assessing Officer who has jurisdiction over the depositor to the deposit office in Form G or as near thereto as possible, and the deposit office shall pay the amount of balance including interest accrued, to the credit in the account of the depositor by means of crediting such amount to any bank account of the depositor"
So if you notice the language used here, it goes like "if the depositor wishes to close the account." So you continue with the account as long as you have already exhausted the balance in the account.
If you may refer to the text of the Capital Gains Account Scheme, 1988, Section 13(1) - Closure of Account:
"If a depositor desires to close his account, an application shall be made with the approval of the Assessing Officer who has jurisdiction over the depositor to the deposit office in Form G or as near thereto as possible, and the deposit office shall pay the amount of balance including interest accrued, to the credit in the account of the depositor by means of crediting such amount to any bank account of the depositor"
So if you notice the language used here, it goes like "if the depositor wishes to close the account." So you continue with the account as long as you have already exhausted the balance in the account.
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