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Taxability of Amount withdrawn from Capital Gain Account Scheme before 3 yrs

Tax queries 362 views 1 replies

Dear All Professionals,

I have deposited in CGAS in July 2019 and now I want to withdraw whole of the amount from the said Scheme for medical purpose (i.e. other than specified purpose u/s 54).

First, whether I can withdraw for other than specified purpose before 3 years from the date of deposit?

Second, what is the taxability of this transaction under Capital Gain  (in which year it is taxable?)

Kindly mention relevant Section, CGAS Rule, Circular or case law (if any)

Replies (1)
As per the section 54,if the amount deposited in CGAS is utilized within 3 years or withdrawn prematurely, the capital gain will be charged at 20% in the year of premature withdrawal or expiry of 3 years


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