TaxTMI 
TaxTMI 
On sale of commercial property in feb 15, I realised ₹ 10 lacs. On this long term capital gain after indexation was, say 4 lacs. I deposited sale consideration of 10 lacs in capital gain account and claimed exemption of LTCG tax in my return. Now, if I do not invest 10 lacs in purchase or construction of house within 3 years of sale of comml property, on what amount and at what rate, am I liable to pay tax? Further, how can I withdraw amount lying in my capital gain account from bank? Any prescribed form for seepkin ITO approval? Please guide.
capital Gains tax
22 Nov 2017 
1 Reply 
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Capital gains reinvestment requirement triggers tax liability if gains are not timely invested and requires withdrawal procedure.
Taxpayer sold commercial property, deposited sale proceeds in a capital gains account and claimed long-term capital gains exemption based on reinvestment. Core questions: if the deposited amount is not invested in purchase or construction within the three-year period, what amount and at what rate will be taxable; and what is the procedure, forms or ITO approvals required to withdraw funds from the capital gains account. The reply advised seeking an income-tax expert for clarification. (AI Summary)
Taxpayer sold commercial property, deposited sale proceeds in a capital gains account and claimed long-term capital gains exemption based on reinvestment. Core questions: if the deposited amount is not invested in purchase or construction within the three-year period, what amount and at what rate will be taxable; and what is the procedure, forms or ITO approvals required to withdraw funds from the capital gains account. The reply advised seeking an income-tax expert for clarification. (AI Summary)