Ltcg on house property

v.raj (individual) (104 Points)

29 January 2019  

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.