11 May 2012
i have deposited rs. 40 lacs in the above mentioned scheme u/s 54 now i want to withdraw rs 4 lacs to pay my lic premium can i withdraw the amount from it or not??
this is the 2nd yr of deposit? i am ready to pay tax on rs. 4 lacs can i withdraw it??
12 May 2012
If it is savings account under capital gains account scheme,1988 the depositor has to apply in form C for the first withdrawal with details of purpose for which money is being withdrawn. For subequent withdrawal form D with utilisation of earlier withdrawal has to be submitted to bank. Effectively, except for the first withdrawal, in all other subsequent cases, one needs to furnish the details of earlier withdrawals, such as the purpose of utilisation, amount utilised, party to whom payment made, receipt no. etc. The bank is empowered to deny withdrawal in case it is found that they are not utilised for construction/purchase of property or violation of any conditions. If subsequent withdrawal is denied, capital gains attracts on Rs. 40 lakhs.
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