Withdrawal of Excess Deposit from CGAS Account – Section 54F

Dear Members,

I need clarification regarding an excess deposit made in a Capital Gains Account Scheme (CGAS) under Section 54F.

Here are the details of the case:

  1. A person sold a non-residential property and earned capital gains of ₹92,75,081, which qualifies for exemption under Section 54F.
  2. As per the capital gain computation, the reinvestment requirement was ₹92,75,081.
  3. However, an amount of ₹1 crore was deposited in the CGAS account.
  4. The entire capital gain amount has been utilized for purchasing a new residential property, and the person now wishes to withdraw the excess amount of ₹7,24,919 from the CGAS account.

The questions are:

  1. Can the excess deposit (₹7,24,919) be withdrawn, and what is the procedure for the same?
  2. What specific documentation would be required for such a withdrawal?
  3. Will this withdrawal have any tax implications, considering the withdrawn amount is not part of the capital gain exemption requirement?

Thank you for your guidance.

Best regards,

Vidyadhar

Replies (1)

The excess amount is not taxable, but you will have to get permission to close the account from your Jurisdictional ITO. Based on that an application can be made with bank to refund the balance amount.

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