Capital Gain Account related question

Tax planning 209 views 2 replies

Dear Brains of India,

I sold a house in the last year and made a profit of 16 Lakh after indexation (filed in last return). As I was planning to buy another property, I opened the Capital Gain Account with SBI. However, due to some mistake in calculation I have invested 19 Lakh (instead of 16 Lakh) in that account.

Now, I want to withdraw money to pay to the seller (resell flat). My question is:  
Should I pay the full amount (i.e. 19 Lakh) plus interest which is accumulated till date or I should pay only 16 Lakh which was the actual capital gain? Do I need to take permission from my Income tax assessment officer to withdraw the money?

 

P.S.

In Income tax return I have shown profit of 16 Lakh and Capital Gain Account Investment of 19 lakh.

Replies (2)
Welcome to Forum joining Today

Pl do not write brains of India. Avoid it.

You have to apply in a prescribed form to SBI for withdrawal (closing) of the account with a prior permission of your jurisdictional AO.

16 or 19 lakhs is not an issue. What I mean to say is that value of new flat as per agreement should be above 16 lakhs to validate full exemption you undertook under 54 in the FY in which you sold your old house.

Follow the process and buy happily new FLAT
How much u claimed exemption in ITR that much amount you need to invest.. Other wise balance not utilized will be treated as income


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