closure of capital gain account with SBI

[Rupesh Gupta]

i have  capital gain account  ( 31 lacs) with SBI under RBI capital gain scheme 1988. It was opened in May 2008 for the capital gain i had by sale of a resedential plot, and was supposed to be closed in May 2011 after expiry of 3 years. Somehow i was not able to use any money from this account to purchase / construct any new property.

I had paid the taxes on the intrest accrued every year based on TDS deducted and intrest statement given by bank to me. I have money both in account A ( 5.7 lacs) and 33 acs( in account B, SDR and TDR).

I had approached my assessing officer at ITO for his clearance on form G, but he did not sign saying that i had to clear my taxes first. As taxes are tune of 4 lacs , i am not in position to arrange this amount. I had requested SBI to deduct money from my capital gan account, but they refuse. Also, my request to transfer the intrest accrued in this account is not being considered. What is the law on this? How i am supposed to pay the taxes. It is very strange that i am not able to utilise even the intrest accrued on which i had already paid the taxes? Also , problem is that bank officers and assessing officer are not quite aware what to do and are playing safe. Suggest a way out??

AI Summary

Individual Faces Tax Issues After Failing to Use Capital Gain Account Funds Within Three Years Under RBI Scheme 1988 An individual opened a capital gain account with a bank under the RBI Capital Gain Scheme 1988, intending to use it for property investment. However, they did not utilize the funds within the stipulated three-year period and faced issues with tax clearance. The assessing officer refused to sign the necessary form without tax payment, and the bank would not allow deductions from the account for tax payment. A chartered accountant advised approaching higher tax authorities to instruct the bank to retain and pay the tax dues. Another forum participant expressed having a similar issue.