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Cap. Gain taxability

21 March 2021

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.

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7 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 21 March 2021

No consequences shall happen

sabyasachi mukherjee (27858 Points)
Replied 21 March 2021

Sojitra
pls be more explicit.

Naveen (student) (334 Points)
Replied 22 March 2021

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)
Replied 22 March 2021

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)
Replied 22 March 2021

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)
Replied 24 March 2021

no penalty interest solely for the reasons raised.

siva prasad lavu (analysist) (22 Points)
Replied 25 March 2021

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In such the assessee shall be entitled to withdrawn the utilized amount in accordance with the scheme.