Approval of ITO for Withdrawl from Capital Gain Account

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  1. Durga Prasad

    Durga Prasad New Member

    Can any one invest in capital gain deposit scheme for more than three years? If the amount deposited under capital gain deposit scheme is not utilised within 3 years, is the renewal of deposit for further period on maturity date possible? If such deposit in the above case be cancelled, whether approval from the IT assessing officer is required? Kindly clarify.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    On completion of 3 years - capital gains tax would be levied on the unutilised amount lying in the capital gains account scheme.

    It is also not advisable to renew it as in any case - it is now taxable.
     
  3. Durga Prasad

    Durga Prasad New Member

    Dear Gaurav Sir, ThanQ for your reply. In a nationalised bank, a fixed deposit under CGS was initially made for 5 years and the same was renewed for further 5 years with quarterly interest liquidation. TDS has been deducted as applicable while paying interest amount. Now, the customer wants to withdraw the deposit before maturity. Then any approval from IT assessing officer is necessary to do so? Please clarify. Thank You in advance.

    With regards.
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    To withdraw amount from the Capital Gains Account, you would be required to furnish a form for the withdrawl.

    And in that form, there is a space for the income tax officer to sign and approve the withdrawl. Although in case you are lucky, the bank official may not check the approval and may grant it to you without approval.
     
  5. Kannan

    Kannan New Member

    Sir I want to withdraw from capitalgain a/c for my domestic expense. Iam ready to pay the IT for the withdrawal amount. Pleas let me know is it possible , If so how much I have to pay as IT and what is the procedures.
    Regards
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    @Kannan : Yes, you can withdraw from Capital Gains Account for household expense.

    You would be required to pay 20% Capital Gains Tax on the amount which you didnt reinvest and rather used it for household expenses.
     
  7. mevj

    mevj New Member

    how to calculate the capital gain ?
     
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