08 August 2014
LTCG earned in A.Y.2013/14.Deposited under capital gain account scheme with Bank.Now today I want to close the account and withdraw money and pay applicable tax and surcharge.Approached ITO.He wants me to revised the return for A.Y.2013/14 and pay taxes alongwith interest U/s 234b and c,please guide me,as without ITO's permission,bank is not allowing me to withdraw money.....
12 August 2014
the AO is correct only to the extent that you will have to pay tax. but revising the AY 2013-14 return is not required. you should pay tax in current year. Please note that without AO's approval, you cannot withdraw money from CGAS account.
20 August 2014
dear umesh, there are two views regarding taxablity of pre mature withdrawl form CGAS sceme.
one view is that u have to pay tax in the year of withdrawal from CGAS account . if u withdraw from CGAS account in the F>Y 2014-15 , then it will be taxable in this current year , A>Y 2015-16. the other view is that , as per proviso to sec 54 (2) which says if the amount deposited under CAGS is not utilized wholly or partly than un utilised amount will be income of previous year in which period of three years from the date of transfer of original asset expires
interpreting the section means if u have opened the account in FY 2012-13 , then three years will expire in FY 2015-16. hence un utilized amount will be taxable in the A>Y 2016-17. this is my opinion. u can discuss the matter with some other expert.
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