Hi, I have sold a land in the month of april 2010. I am incurring Long term Capital gain of Rs.50,00,000. I have not yet found a property to buy or reinvest my ltcg. I have opened a LTCG account with a nationalise bank and have deposited Rs.10,00,000. Now can i use this (Rs.10,00,000) money to pay my LTCG Tax (i.e. 20% of 50,00,000) in case I dont find a right property in the stipulated period of time. Please Advice.
1 Answers
In case property is not purchased within next three years of sale, you may withdraw amount from capital gain scheme account by paying tax on same. For closure of this account, a written approval from income tax assessing officer is required. So you need to visit income tax office and explain your case to them, they will issue approval letter which can be provided to bank to close account and withdraw amount.
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