• Capital Gain Tax

We sold a property in 2019 that had been purchased in 1975. The sale consideration was ₹1.15 crore. Out of this amount, ₹55 lakh was deposited in a Capital Gains Account Scheme (CGAS) account and was reported under Section 54 of the ITR.

However, the actual long-term capital gain was only ₹17 lakh. At that time, we intended to use the amount deposited in the CGAS account solely for residential purposes.

Now, when we approached the bank to withdraw the funds, they informed us that more than three years have elapsed and that Form G must be submitted and tax paid on the entire ₹55 lakh, after which the form must be stamped by the Income Tax Department.

We would like to understand how the money can be withdrawn now, considering that the actual capital gain, as determined by the valuer, is only ₹17 lakh.