CGAS account opening after ITR due date extension

@ Akadsh K

You can definitely open the CG Account today to save tax. 

But go prepared with all the sale details [ TDS copy, for money deducted by buyer , Registration deed copy ] for Property sale.

For Equity, MF etc, the appropriate sale documents from the broker.

Thanks a lot for prompt reply. Just want to clear. I sold the propery in June last year, so I can still open CGAS account right?  THere is no 6 months, 1 year etc limit from sale date?

@ Akash K

You are still ok for claiming cg tax exemption provided your CG account is running before midnight today .

Becos your June 2024 property sale falls In FY2024-25 and the ITR filing for same is in AY2025-26, which is now.

Thanks. I am able to get it opened and transfer the money. Hope I'll be able to get all the capital gains tax along with interest paid plus surcharge payment due to slab change returned.

@ Akash K

You have done well.

Now need to file your return, ITR-2 is tough task due to various bugs.

Once you file the return, the excess advance tax already paid by you should get refunded. 

I have not file my IT return yet, am I still eligible to open CGAS account? Please guide. I am going to file belated return to save CG tax.

@ Sushmit Shah

You have to provide dates and type of transactions for me to give you a proper advice.

We have sold the property in Jan-2025 and had earned CG on it. The property sold was ancestral land. The ITR to be filed is for AY 25-26. Since the due date is passed my question is whether still I can open CGAS to avail exemption.

  @ Sushmit Shah

What I am aware of the CGAS account opening rules, it is not possible to do with belated return.

Your opportunity has passed.

Only option remaining for you is to purchase sime property within 2 years of getting the CG.

@ Ranjan

Thank you Sir for the update. Can I still get exemption while filling the IT return?

@ Sushmit Shah

Following is my understanding but I could be wrong also :-

1.Once CG is realized, same must be used within 2 years to purchase a new property, or invest in certain Instruments {upto 50 Lakh max].

2.If full CG amount was not utilized for the above before the due date of the first ITR after the getting the CG, then the balance must be kept in a CG account and to be used for purchase of specified Govt Instruments [within 6 months after getting the CG] or for purchase of a new property [ within 2 Years from getting the CG] for getting tax exemption on the utilized amount of the CG. The amount kept in CG Account is, effectively, with the Govt, and could be utilized till the 2 years time limit for new property purchase. 

3.If the CG account could not be opened within the ITR Due date [ with extension ], then the full balance of CG would be taxable as per the CG taxation rules.

@ Ranjan

Understood. Thank you once again for the guidance.

Opening and funding a Capital Gains Account Scheme (CGAS) account on 16th will generally not preserve a Section 54 exemption if the applicable CGAS deposit deadline was 15th. The relevant deadline is the original due date under Section 139(1), not an extended ITR filing date; an extension to file the return does not, by itself, extend the CGAS deposit deadline. Paying the tax yesterday does not prevent a refund if an exemption is validly claimable, but a late deposit alone may not support that claim. Check the exact assessment year, property-transfer date and applicable due-date notification before relying on the extension.

For the return, claim only the exemption supported by qualifying investment or a timely CGAS deposit. If the full ₹6 lakh is paid and the final tax liability is lower, the excess can be claimed as a refund through the ITR, subject to processing.

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