UNUTILISED CAPITAL GAIN FD

This query is : Resolved

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If you invested capital gains from a shop sale in a Capital Gains Account Scheme (CGAS) Fixed Deposit (FD) in AY 2011-2012 but failed to file your Income Tax Return (ITR) for it, you may still be able to withdraw the funds. You'll need to check with your bank, obtain an FD statement, and get permission from the Income Tax Officer (ITO) to withdraw. The tax liability, including 20% plus cess, will generally be applicable in the year of withdrawal, though the ITO may also charge interest from the expiry of the initial 3-year period. It's advisable to apply to the ITO for account closure and settle any tax demand.

SUNIL YADAV

SUNIL YADAV (Querist)
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13 August 2025 Dear All

I have received 50 lakhs against sale of shop in AY 2011-2012 and i had invested full amount in Capital Gain but failed to file ITR for the same after 14 years can i withdraw from Capital gain ITR and what is tax impact on it??

Please suggest

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 August 2025 Check with bank for the status of the CGAS FD. If open you have to get its statement and get ITO permission to withdraw the amount on Form G. Tax liability will depend upon the total amount of the FD value. Rate will be 20% +cess.

SUNIL YADAV

SUNIL YADAV (Querist)
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13 August 2025 Okay but in which year tax will be applicable withdrawal year or capital gain year ie ay 11-12

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 August 2025 In the year of withdrawal.

SUNIL YADAV

SUNIL YADAV (Querist)
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21 August 2025 i went to the officer today he said liability on capital gain withdrawal must be from expiry of 3years not current year. i have taken capital gain fd in ay 2011-2012 and i am going to withdraw in current year i.e. AY 2026-2027 PLEASE suggest with any document proof or section to justify the officer

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 August 2025 He is right, but as you will be paying the amount on withdrawal, ITO will charge tax with interest in current year and issue closure certificate. ITO will finally decide whether to charge interest and its quantum, so apply to ITO for closure of the account and pay tax as per the demand.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 September 2025 Good luck....

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