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Tax implications of deposit in cgas

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Amit

35 Points Posted on 18 November 2022

Hi,

Suppose some money was deposited in capital gains account schemes in ay2020-21. Later after period of 2 years i.e ay2022-23 say money is withdrawn then what is tax implications.transfer of asset is long-term with transfer date in ay2020-2021

1- tax at normal rate i.e 20% or

2- tax at normal rate+ 1% interest for 2years.

Please help.

Replies (5)

Quick Summary

This discussion explores the tax consequences of withdrawing funds deposited into a Capital Gains Account Scheme (CGAS) in AY2020-21, after a two-year period in AY2022-23. The user seeks clarification on whether the withdrawal is taxed at the normal rate (20%) or the normal rate plus 1% interest for the two years. The consensus suggests the withdrawal is taxed at the normal rate, assuming the asset transfer occurred in AY2020-21 and the funds are being withdrawn for the purposes outlined in the scheme, such as Section 54F.