Query: capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2013 Query: Capital Gain
An individual assessee sold out long term property and earned long term capital gain amounting to Rs. 50 Lacs at the end of Aug 2012.
In Sep 2012 he deposited all capital gain of Rs. 50 lacs in Capital Gain account in Scheduled Bank. In Jan 2013 he purchased DDA flat amounting to Rs. 25 lacs by withdrawing from capital gain account.
Now the assessee wants
• To withdrawn full amount standing in capital gain account while return to be filled by July 2013.
• Whether amount withdrawn from capital gain account can be utilized by renovation work on newly purchased DDA flat and whether IT law will allow it for computation of capital gain exemption purpose.
• Assessee wants to deposit full tax on capital gain on above transaction and want to back deposit made in capital gain account mistakenly.
• As there was not requirement to deposit capital gain in capital gain account in Sep 2012 then whether he can withdrawn full amount by do close account before Mar 2013.
Please suggest Point wise Your valuable advise

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 January 2013 Withdrawal from Capital Gains Account has to be made by submitting the prescribed forms
FORMC FORM D FORM G & FORM H .
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The amount withdrawn can be utilised for the renovation -in the name of -"making the house inhabitable" for the assessee after purchasing the property.
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He can withdraw money for the defined purpose and can redeposit the amount earlier of the two, within six months or prior to closure of the FY.
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It is deemed that account opening requirement remained always there, and for closure the prescribed procedures have to be followed.
.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2013 Thanks Sir for your reaply... But As there was no requirement to make deposit before July 2013 and that assessee deposited all by mistake in capital account in place of simple his/her saving account.. Now whether can he withdrawn amount in the month of Jan 2013. and after march he will pay all tax on capital gain. Banker told him that total amount would be paid when letter will be received from income tax deptt. now what assesee can do because he want now full amount in Feb 2013.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 January 2013 You can definitely withdraw the amount by filling up Form G.
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On this Form you have to get the Approval of Assessing Officer before submitting it to bank.
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The prescribed procedure under the Scheme has to be followed once such account is opened.

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