Cap. Gain taxability

203 views 7 replies

harsh Sojitra

10 Points Joined January 2017

consequences of not using money within 2 or 3 years from capital gain deposit sheme with respect to taxability, penalty, interest u/s 234 abc.

Replies (7)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Joined November 2019

No consequences shall happen

sabyasachi mukherjee

28026 Points Joined May 2017

Sojitra
pls be more explicit.

Whatever the amount u have not utilised will be taxable as Capital gain because u avoided taxing it before by depositing in the scheme. Accordingly 234ABC will come depend on ur tax and ur date of ITR filing.

If u wish to know more details, plse give exact figures. We can help u

Kapadia Pravin

17264 Points Joined December 2018

The consequences are very harsh. The amount lying un-utilised shall be taxable in the year of expiry of 3 years. if senior citizen then no payment of advance tax. otherwise interest under 234B and C

harsh Sojitra

10 Points Joined January 2017

suppose my capital gain is rs.18 lacs lying in deposit account which i have not used in 3 years and now it is lying in that account from last 5 years. so for the 2 years how much tax and interest and penalty i need to pay to free that money from that account. Plz suggest me interest according to 234 ABC if applicable.

anil jain

Partner

1072 Points Joined December 2009

no penalty interest solely for the reasons raised.

siva prasad lavu

analysist

22 Points Joined August 2009

the amount deposited in the CG scheme shall not utilized with in the stipulated time period for the said purpose then the proportionate amount shall be treated as long term capital gain of the previous year in which the period of 3 years from the date of transfer of the original asset expires.

In such the assessee shall be entitled to withdrawn the utilized amount in accordance with the scheme.