Capital gain Utilization

Whether you claimed sec. 54 exemption in ITR of AY 2023-24?

Yes sir Exemption was claimed on time U/s 54 in 2023-24 ITR.

No option available for its utilization claim in ITR (for AY 2025-26); so no need to report.

You will be asked for its utilization at the time of closure of CGAS account.

@ Saurabh Katiyar

From details provided by you, it seems, 2 years have already passed after getting the CG, and the CG account should be closed.

In such a situation, if there was any balance remaing in CG account after purchase of another flat, then it would need to be reported in your return and would be taxable.

If there is no balance in the CG account then, as Dhirajlal Ji advised, nothing to be reported in ITR.

Capital Gain account scheme fulfilled

I sold land in jan 2023 for 2.89cr. indexed cost 20lakhs capital gains after indexation 2.69cr but deposited2. 83 In capital gains account. Now i have purcased flat in october 2024. Total cost of purchase and renovation etc is 2.70cr. i have withdrawn the entire cg amount. Including interest accumulated. Do i have to pay tax. 

@ Kamal Poddar 

Since the amount deposited in CG account and later taken out (with interest) is more than the actual CG, the excess amount is taxable.

If the property purchase had exceeded the CG amount, the tax exemption would apply only to  the CG amount 

The capital gain is taxable in the year the original flat was sold (FY 2022–23, AY 2023–24), not when you later withdrew the amount from the Capital Gains Account Scheme (CGAS). If the gain was claimed as exempt because it was deposited in CGAS, the purchase of the new flat in FY 2024–25 may support that exemption, subject to the applicable section and time limit. Report the later utilisation in the return for FY 2024–25 (AY 2025–26) under Schedule CG, in the CGAS withdrawal/utilisation details, as applicable; it is not a fresh capital gain merely because the deposit was used.

• Check whether the original exemption was under section 54 or 54F and whether the new flat was purchased within that section’s permitted period. If the amount was not fully used within the permitted period, the unutilised portion may become taxable in the year the period expires.
• The precise fields depend on the section and the return form. Reconcile the original return, CGAS deposit and withdrawal, and purchase cost before filing.

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