Capital Gain Accounts Scheme, 1988

    About

  • Eligible taxpayers who wish to claim exemption from income arising on sale of long term Capital Assets, meant for re-investment by way of acquisition of any other specified asset within stipulated time frame, may avail the scheme.
  • Benefit

  • Adequate time to acquire the new asset.
  • Earning interest at Savings Bank/Fixed Deposit rates while availing tax exemption.
  • Eligible applicants

  • Resident individuals, Body of individuals,HUF,Sole Proprietorship Firms, Partnership Firms,Companies, Association of Persons,NRIs, Artificial Judicial person who have capital gains taxable in India.
  • Type of Accounts

  • Deposit Type A—Savings Bank Account.
  • Deposit Type B—Term Deposits(DDP/FDR)
  • Balance Criteria

  • Minimum—Savings : Rs. 1000/-, Term Deposits : Rs.10000/-
  • Maximum—No upper ceiling
  • Sl.No. Section Nature of Capital Gain Eligible Applicants Maximum Tenure
    154Capital Gain arising from the transfer of long term capital assets being building or land appurtenant thereto used for residential purpose, income of which is chargeable to income from house property. Individual or HUF 3 Years
    254BCapital Gain arising from the transfer of long term capital assets being land used for agriculture purpose in the 2 years. Individual or HUF 2 Years
    354DCapital Gains arising from the transfer by way of compulsory acquisition under any law of a capital asset being any land and building or any right in land or building forming part of industrial undertaking. Any Person 3 Years
    454FCapital Gain arising from the transfer of long term capital assets not being used for residential purpose, however, in case of investment in residential house property Individual or HUF 3 Years
    554GCapital Gain arising from the transfer of long term capital assets being machinery or land or plant or any right in building or land used for the purpose of business of an Industrial undertaking situated in urban Area. Any Person 3 Years
    654GACapital Gain arising from the transfer of long term capital assets being machinery or land or plant or any right in building or land used for the purpose of business of an Industrial undertaking situated in urban Area effected in course of shifting industrial undertaking to SEZ whether developed in any urban area or any other area. Any Person 3 Years
    754GBCapital Gain arising from the transfer of long term capital assets transfer of residential property Any Person 1 Year

    Forms

  • Operational Forms- Form A, Form B, Form C,Form D, Form E, Form F, Form G,Form H may be filled by depositor as per requirement
  • Interest Rates

  • Type A-- As applicable to normal Savings Bank account
  • Type B-- As applicable to Term Deposits for respective maturities of Retail & Bulk deposits.
  • No additional interest rate benefit for Senior Citizens or Staff.
  • Loan facility

  • No loan facility is available against deposits under the scheme
  • The Term Deposits opened under the scheme can neither be accepted as margin money for non fund based facility, nor as collateral security to any type of fund based facility.
  • Nomination

  • Nomination facility is available. Maximum 3 persons can be nominated in order of priority.
  • Withdrawal

  • Amount withdrawn from Account Type A has to be utilized within 60 days from the date of such withdrawal for the purpose mentioned in relevant sections of Income Tax Act. Unutilized amount should be re- deposited in Account A immediately thereafter. Non compliance of this rule will render the depositor to lose exemptions under relevant sections.
  • Any withdrawal over Rs. 25000/- should be effected by crossed IOI only.
  • Transfer of Account

  • Account can be transferred from one branch to another.
  • Issue of duplicate Passbook /Receipt

  • In the event of loss or destruction of passbook or receipt, duplicate may be issued on application and after following the necessary procedures for doing so.
  • Auto renewal

  • Auto renewal is not available for Term deposits opened under the scheme.
  • Closure

  • Application with specific authority letter or certificate from the Income Tax Officer of the respective jurisdiction should be furnished for closure of account. The closure will be allowed on the terms mentioned in letter of authority
  • In case of death of depositor, the nominee shall apply for closure with the approval of Assessing Officer having jurisdiction over deceased depositor and in absence of nomination, legal heirs may do so.
  • Coverage

  • The scheme is operative at all branches except rural branches
  • Note

  • TDS will be deducted at applicable rates on Term Deposits.
  • No outward remittance through NEFT/RTGS/IMPS will be allowed.
  • No cheque book and ATM-cum-debit card will be allowed in Savings Account opened under the scheme.