CA Pawan Maloo (Practicing Chartered Accountant) (471 Points)
09 February 2012Dear Friends
We sold a property and deposited that amount in capital gain account last year. now we want to withdraw that amount in full for our personal use.
Is there any case law / provision which says that one can not withdraw the amount deposited in capital gain account scheme before expiry of 3 years from the date of deposit.
PAVAN MAHESHWARI
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 09 February 2012
Capital gain account is only for temporarily parking of funds before made investments in the purchase/construction of house property. So, if you close the account you have to obtain a certificate from AO, who in turn adjust the capital gains tax and order for release of the balance.
CA Pawan Maloo
(Practicing Chartered Accountant)
(471 Points)
Replied 23 July 2013
The AO do not allow to withdraw money before the completion of 3 year tenure.
Mihir
(Wealth Manager)
(5293 Points)
Replied 23 July 2013
There are two types of accounts viz saving and time deposit.
You can withdraw from your saving-capital gain account when you are required to spend on purchase of property. If you want to close the account, assessing officer needs to be informed and show that you have secured a property to save tax, otherwise the whole amount will become taxable.
If you have opted for time deposit-capital gain account, then you won't be able to withdrawn before expiry of the deposit.
Check what type of account do you have.
CAclubindia
