Fixed deposit kept under capital gain scheme

Tax queries 907 views 3 replies

Arvind Bhaskar Rane

Asst Manager Excise

25 Points Joined November 2013

Please advice me for my following capital gain fixed deposite receipt issue with Central Bank of India, Mulund west branch.

We have purchased 625 sq.ft. flat in Mulund west in the year 1989 on my wife. She was working with Municipal Corporation of Greater Mumbai from 1976 as Trained Teacher. In year 2004 we have purchased new flat in Mulund on both name.(Husband & Wife). We have sold old flat and capital gain invested in Govt. Capital Scheme with central bank of india Fixed Deposit Scheme on 31.07.2006.(Rs.265000/-). Unfortunately my wife expired due to Cancer in year Jan 2009 before maturity of Fixed Deposit receipt.As a legal heir when I approached to Central Bank of India Mulund Branch, they asked me take clearance from Income tax Department on Form-H. Last three year I am following with Income Tax Dept. & Bank, till today there was not a single reply from Income Tax Dept. CentraL bank of India also send letter to Income Tax dept. regarding this issue and ask clarification for disbursement of this amount.

Kindly advice me to get back my capital as I am SENIOR CITIZEN and badly required of fund for my medical treatment.

Thanking You and waiting for guidance from your forum at earliest.

Warm Regard,

A B RANE.

Replies (3)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Sorry to hear that sir

Did only 1 person made the payment or the payment for purchasing the flat was made by both of you? If its the second case then cap gain must have arose to both of you.

There is this circular 743, which you must consider when you are withdrawing the money

On your share you will have to pay cap gain @ 20% + cess

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec54_743_96.htm

2. A question has been raised regarding the taxability of the unutilised deposit amount in the case of an individual who dies before the expiry of the stipulated period.

3. The matter has been considered by the Board and it is clarified that in such cases the said amount cannot be taxed in the hands of the deceased. This amount is not taxable in the hands of legal heirs also as the unutilised portion of the deposit does not partake the character of income in their hands but is only a part of the estate devolving upon them.

Since bank has also asked ,via letter,clarification regarding issue, you have written evidence using which you can either file RTI for knowing why AO is not responding (& he'll have to reply) or you can file a writ petition in High court since cause of his behaviour you are prejudiced.(where as per given info,matter will be in your favour, Plus court might consider giving some compensation since it took so many years)

Arvind Bhaskar Rane

Asst Manager Excise

25 Points Joined November 2013

Thanks for your reply on my fixed deposite issue. kindly quote me case no. to go for writ petition so that I can fight with Income Tax authority.

Regards,

A B Rane.

CA Nitin K. Varshney

FCA DISA CCA Peer Reviewer (ICAI)

616 Points Joined November 2011

sir, before going for writ, file an application under RTI act. first of all you have to know that fault is on whose part........otherwise you have to file writ on Central bank and IT authorities both.