Long Term Capital Gain Benefits

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  1. Capital Gain

    Capital Gain New Member

    Dear Sir,

    I have sold a property in 2012 which I bought in 2004 and kept the money in Long Term Capital Gain account with PNB since 2013. Its been there for past 3 yrs, I have paid the tax on interest part every year. Now I want to withdraw complete amount and utilize this sum for other than the purchase of new property. I would like to know about my tax liabilities in order to withdraw this money and use it for other investment purpose.

    Please advise.

    Best Regards,
    Devashish Chanda
  2. ZED

    ZED Well-Known Member

    Relevant extracts from the S.54
    If the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,—

    (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and

    (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.
  3. Capital Gain

    Capital Gain New Member

    Thanks for response ZED, I would appreciate if any simple example with figures can be given to make it more understandable .
  4. ZED

    ZED Well-Known Member

    Whatever amount was exempted earlier, would now be chargeable to tax in the year of withdrawal u/s 45 (capital gain). Infact , when you will move an application for withdrawal of funds, you will first need to pay the tax and then your fund shall be released.
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