Tax implications of deposit in cgas

Hi,

Suppose some money was deposited in capital gains account schemes in ay2020-21. Later after period of 2 years i.e ay2022-23 say money is withdrawn then what is tax implications.transfer of asset is long-term with transfer date in ay2020-2021

1- tax at normal rate i.e 20% or 

2- tax at normal rate+ 1% interest for 2years.

Please help.

 

 

 

 

 

 

 

 

Replies (5)
Quick Summary
This discussion explores the tax consequences of withdrawing funds deposited into a Capital Gains Account Scheme (CGAS) in AY2020-21, after a two-year period in AY2022-23. The user seeks clarification on whether the withdrawal is taxed at the normal rate (20%) or the normal rate plus 1% interest for the two years. The consensus suggests the withdrawal is taxed at the normal rate, assuming the asset transfer occurred in AY2020-21 and the funds are being withdrawn for the purposes outlined in the scheme, such as Section 54F.

The money can be withdrawn only against the rules provided in capital gain account scheme.So its for the purpose mentioned therein.

I agree that but say I am trying to use for 54F now any unutilized amount can be withdrawn after account closing and paying taxes correct.

For that event I wanted to understand which case of above 2 is applicable.

Ans. Option 1.                           

Thanks for both replies.

You are welcome ..                       

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