Closer of Capital Gain Account Scheme, Income Tax

[Sneh Shah]

Hi

I have parked my money in Capital Gain Account Scheme. Now within a year I have purchased new flat & i want to utilize capital gain account money. Bank says that for closing an account you have to compulsory sign of Assessing Officer in Income Tax.

1) Is it true to have mandatory sign of the AO?

I want to verify here because some source says that if account is within 2 years of span then not required sign of AO officer. Some says its required only if you have balance money in account. you can partly withdraw all money then its not required.

2) Is it easy process to sign of the AO in income tax? what proof they required?

My CA went to AO but he saying how can he verify the documents whether builder is genuine or given allotment letter is not fake. So he denied to sign the same.

3) what steps i can take to get the sigh of Form G from AO officer?

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

There are no restrictions on withdrawal from Type A – savings account. While premature withdrawal from Type B account is allowed, it is allowed only after transferring the amount to Type A account and there may also be consequential penalty.

Any amount withdrawn is required to be utilised for specified investment within 60 days of withdrawal and any unutilised amount may be re-deposited to Type A account immediately.

Closure of both types of account requires approval from jurisdictional income tax officer. Form G is required to be submitted for the closure of account along with jurisdictional income tax officer’s approval.

AI Summary

Capital gain account closure requires assessing officer approval; withdrawals may need transfer to savings type and prompt reinvestment. Closure of either Type A or Type B account under the Capital Gain Account Scheme requires submission of Form G and approval from the jurisdictional income tax officer. Withdrawals from Type A accounts have no restrictions; premature withdrawal from Type B accounts is allowed only after transfer to a Type A account and may attract a penalty. Any withdrawn amount must be utilised for the specified investment within sixty days, and unutilised amounts may be redeposited immediately into a Type A account.