Hope you are doing well !
Under the Capital Gains Account Scheme, you have the option to choose between two different account types. These include:
•Type A – CGAS Savings Account: This type of CGAS savings account is just like any other bank saving account. You will get the same rate of interest on your funds as you get for a normal bank savings account, and you can withdraw funds from it as lump sum or periodically, for purchase or construction of another property.
•Type B – CGAS Term Deposit Account: The CGAS type B account is a term deposit account where your amount is locked for a period of 3 years, starting from the date of transfer. The interest rate for this account is similar to that offered on a fixed deposit account by the bank. On maturity, Type B account can be transferred to Type A. If you wish to withdraw money from a Type B account before maturity, it needs to be first transferred to a Type A account, to initiate the withdrawal. A penal charge of 1% is also applicable.
As such,there is no time limit/conditions for type A account.
Lastly, if the amount not utilized remain in the Capital Gain Deposit Account Scheme even after a specified period of 2/3 years. In short, either you are not able to finalize the property or provisioned extra amount for property purchase. The 100% of the amount not utilized will be taxed as long term capital for the financial year in which the specific period gets over.
Thanks & Regards,