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CGAS withdrawl and taxation rate under section 54F

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Capital Gain

student

5 Points Posted on 24 April 2025

Hello - Need help with respect to Section 54F :

Sold unlisted shares on Dec 1st, 2023 and deposited the money in CGAS account by July 31st, 2024 to utilise it under section 54F to buy some property. But now i don’t think i’ll be able to utilise it by Dec 1st, 2025. And neither I’m going to do any construction of house, so that is also ruled out. In between, govt has revised the LTCG taxation rate from 20% to 12.5%. Now questions are :

which rate of LTCG taxation will be applicable to me - the rate of FY 2023-24 or the rate of FY 2025-26 ?
which year surcharge and cess rates will be applicable?
And how much time typically AO takes to give approval to withdraw from CGAS account?

Thanks!!

Replies (6)

Quick Summary

This discussion addresses a query regarding the utilisation of funds deposited in a Capital Gains Account Scheme (CGAS) under Section 54F for property purchase. The user sold unlisted shares and deposited the proceeds but may not meet the purchase deadline. Key questions revolve around the applicable Long Term Capital Gains (LTCG) tax rate (20% vs. 12.5%) and surcharge/cess rates, with clarification that the rate prevailing at the time of withdrawal or expiry from CGAS will apply, and indexation benefits will not be allowed. The typical approval time from the Assessing Officer (AO) for withdrawal is also discussed.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212489 Points Posted on 25 April 2025

As per the date of filing application
Recent
Generally 15 to 30 days.

Capital Gain

student

5 Points Posted on 25 April 2025

Thank you sir for your quick response. Just to be on the same page - rate of taxation on CGAS expiry will be applicable prevailing in FY 25-26 - which is 12.5%. Is this the correct interpretation? Thanks