Capital Gains Tax: Do I Need to Open a CGAS Account?

Ans: Unutilised amount of gain is required to be deposited in Capital Gain Account scheme

Ans: As per the provisions of the Income Tax Act in India, if you have made a capital gain from the sale of a residential property and wish to claim exemption under Section 54F by investing in a new residential property, the following rules apply:

- You can claim exemption on the capital gains if you invest the entire amount of capital gains in a new residential property. In your case, the total capital gain is Rs. 15.00 lakh, and you have utilized Rs. 9.00 lakh to purchase the residential plot. To claim the exemption, you must utilize the entire Rs. 15.00 lakh amount for the construction of the new house.

- If you are unable to invest the entire capital gains amount before the due date of filing your income tax return (usually July 31st of the assessment year), you can deposit the unutilized amount in a Capital Gain Account Scheme (CGAS) before the due date to claim the exemption. In your case, if you haven't utilized the entire Rs. 15.00 lakh for purchasing the residential plot and construction has not yet begun, you must deposit the unutilized amount of Rs. 6.00 lakh in the CGAS.

- In your Income Tax Return for AY 2023-2024, you need to show the capital gains from the sale of the residential property, which is Rs. 15.00 lakh, and then claim the exemption under Section 54F for the amount utilized to purchase the residential plot and construct the new house (i.e., Rs. 9.00 lakh). Additionally, you should mention that the remaining Rs. 6.00 lakh is deposited in the CGAS for the purpose of constructing the new house to claim the complete exemption.

Please note that to avail of the exemption under Section 54F, you need to fulfill all the conditions mentioned in the section, such as not owning more than one residential house (excluding the new one) on the date of transfer of the original property and not purchasing any other residential property within a specified time frame.

Ans: Yes you can claim refund of TDS as you are required to show gain amount and CGAS amount in ITR.

If you fail to purchase the property, you will be required to pay tax in the year of expiry of period allowed for purchase/construction

Ans: 01. You can deposit Capital gain amount in Capital Gain Account Scheme with any Public Sector Bank, on or before the last date of filling of your ITR. In your case it shall be JULY-2025.
02. You may book a property (Constructed Residential House) worth Rs.40.00 lakhs, BUT it should be transferred in your name with in a period of 2 years from the date of sale of Property.
03. In absence of information about the Sale Value of property, please note that your exemption shall be limited to Rs.40.00 lakhs (amount Invested).
Most welcome for any further clarifications. Thanks.