New Delhi, Oct. 8 -- Until now, withdrawing unutilized funds from the Capital Gains Account Scheme (CGAS) was a straightforward process. However, thanks to a change introduced in Budget 2024, what was once a convenient deferral tool could now become a potential tax trap.

From 23 July 2024 onwards, long-term capital gains (LTCG) from property are taxed at a rate of 12.5% without indexation. This change, while intended to simplify the capital gains regime, has created an unexpected complication for those who park their property sale proceeds in CGAS.

This is because properties bought before 23 July 2024 but sold after this date are subject to a dual option-the seller can choose between the lower of 12.5% without indexation or the old tax ...