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Ltcg on house property

Others 318 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


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