Ltcg on house property

326 views 3 replies

There is a peculiar issue.

A gentleman sold his flat and unfortunately, not knowing the detailed rule, deposited the ENTIRE amount realised in Capital Gains FD in the bank.

When he acquired a new flat (within the time limit), he withdrew only the amount required as consideration for the new acquisition. The amount for the new acquisition is higher than the  capital gain on the previous sale so no LTCG would be payable. Now, this has still left a significant amount in the CG Fixed Deposit.

Can anyone who has actually come across such an instance, advise now what needs to be done to get the balance amount lying in the FD.

As far as can be understood, logically, the bank cannot stop the redemption of the balance amount and any issue if there is at all any, is  a matter between the individual and IT.

kindly enlighten.

thanks

Replies (3)

Get permission from Jurisdictional ITO for withdrawal of the balance amount.

is it not possible to get redemption of excess balance amount by applying to the bank  even if the full LTCG has been invested?

under what provisions is the bank obliged to keep the balance amount and release it only after getting IT permission, even if the individual makes a declaration?

The investment of LTCG in new house has to be shown only when filing the new Return, no?

Then under what provision one has to approach ITO and undergo a lengthy procedure to get one's own money back which is not in the nature of capital gain in the first place.

thanks

Banks are not allowed to pay back any excess amount from CGAS, 1988 accounts without IT authority's permission.

Read Rule 13 Capital Gains Accounts Scheme, 1988

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details