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capital gain account

saish bhosale (37 Points)

12 July 2018

Please confirm me whether capital gain account opened in bank after utilizing money require compulsory closure ??

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 12 July 2018

Yes, for any balance lying in the account after 3 years....

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saish bhosale (37 Points)
Replied 12 July 2018

Is this closure compulsory or voluntary( as per our wish) as per income tax law

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 12 July 2018

The balance amount left in the account must be offered to tax under capital gains head, alongwith interest earned under IFOS..... rest part voluntary.

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saish bhosale (37 Points)
Replied 12 July 2018

suppose I have utilised the said Amount as per law .i am having only 10000 in capital gain account. Now my question is .is it compulsory to close that account or its on my wish

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 12 July 2018

Closure is mandatory, but you can extend it by time period for any specific reason/s .. say for deposit of new Capital gains proceeds.... etc..

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saish bhosale (37 Points)
Replied 12 July 2018

please confirm the same in the following case:

25 lakh opened capital gain account in bank . Interest 80 thousands received. Utilizing 25 lakh and 70 thousands from account for purchasing new property in SPECIFIED 2 YEARS TIME. Balance 10000 in capital gain account now. My querry is closure of same capital gain account is compulsory or it is on my wish as per income tax law.

Please inform me for this full fledged scenario.
Thanks.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 13 July 2018

As per income tax laws you have fully utilized the money parked for long term capital gains exemption. No more compliance pending.

But here RBI and Bank's own formalities are required to be completed. Bank may not keep your inactive account open for ever. Check their rules and regulations (differs for each bank) over such special catagory account.

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