Why I Open Capital Gain Account Scheme?
Capital Gain Account Scheme especially for those person who has earned capital gain. This scheme’s main purpose is to temporarily save the unutilised amount of capital gain up to its utilisation as per time specified in particular section. The scheme is open to all tax payers who wish to claim exemption u/s 54, 54D, 54F, 54G, 54GA.
Types of Capital Gain Saving Account
There are two types of accounts for depositing the un-utilised amount.
1) Account A is like the saving bank account in a bank were withdrawals are permitted from time to time. Account A has least interest than Account B. Withdrawals are permissible
2) If any taxpayer wants to make the investment for a fixed term, he may deposit the un-utilised amount in ‘Account B’. Account B’s interest is cumulative and is reinvested. Withdrawals are permissible after transfer of the amount to Account A.
Where to Open Capital Gain Account Saving?
The account can be opened with any branch (excepting a rural branch) of the 28 designated
nationalised banks, like the State Bank of India, Oriental Bank of Commerce, UCO Bank, UBI, Punjab National Bank, Vijaya Bank, etc.
Some of the links are given.
Capital Gain Account Saving Scheme in Vijaya Bank
Capital Gain Account Saving Scheme in State bank of Bikaner & Jaipur
Union Bank of India
Indian Bank
Conditions/Important insurctions
- The deposit should be made before the due date for funishing of return for the relevant previous year.
- The tax payer has to open a spearate account under each secion if he intends to avail of the benefit under more than one section, refrred to above.
- Once again i am warning you this account is only for saving your capital gain so you can further utilise this amount for claiming exemption as per section provisions. Otherwise unutilised amount shall be taxable as capital gain for the previous year in which the specified period expires.
Related posts:
- Capital Gain Exemption u/s 54: Capital Gains from Transfer of a Residential House
- Capital Gain Tax on Agricultural Land
- Capital Gains exemption u/s 54F: Capital Gain on Transfer of Asset, other then a Residential House (Sec. 54F)
- Capital Gain Tax Exemptions on Inheritance Property
- Capital Gain Exemption u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA Table
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{ 5 comments… read them below or add one }
i need some more clarification on capital gain account:
let’s say i deposit some x amount in CG account scheme not as term deposit but on deposits that permit me to draw interest on quarterly basis.
my question is:
1. Is this permitted?
2. If Permissible, can i use this interest for purpose other than construction or buying residential property.
I really do not think i will buy or construct any residential asset in the next 3 years. However, i feel the CG tax may reduce in the next three years. hence i want to delay payment of CG tax and at the same time also get some periodical cash flow from the deposit for the three years when i will retire the CG account.
Pl let me know if the above plan is feasible.
thanks
from where to download form B for conversion of capital gain account to Savings account???
Sub : Clarifications regarding Re-investment under Capital Gains Scheme
Dear Sir ,
I had sold one property for 23 lacs on 29.1.2007 and deposited the entire proceeds
In a Public Sector Bank Under Capital Gains Scheme 1988 initially for a period of
2 years. In the Month of Feb 2008, I had purchased a ready built flat for Rs 9.80 lacs
and the balance amount continued to remain in the above said scheme which was
further extended by one year with the intention of purchasing a plot and getting it
constructed as admissible under the Rules.
Now if due to certain reasons one is not in a position to utilize the remaining amount
Within the stipulated period of 3 years , the balance amount remaining unutilized
And liable for tax under the Capital Gains.
Will you clarify the following point s:
1. Can the above unutilized amount can be invested in “ NHAI “ or “ REC” Bonds for a further period of 3 years or 7 years ?
2. What is the amount of tax to be paid under the Capital Gains for the above amount ?
3. Can the Capital Gain amout arrived after applying the Indexation Method be now reinvested or tax liability arrived on capital gains thus arrived at be discharged ?
I shall be higly grateful if you can kindly advise or guide in the above matter.
It maybe mentioned that the TDS on the Interest Portion Covered on Fixed
Deposit under the Capital Gains Scheme 1988 has been deducted by the bank or
Deposited by me in the respective financial years .
Thanking You ,
Sincerely Yours
mnmehta
Received Rs.100000=00 from investment in Rajlakshmi Unit Scheme 1992 of Unit Trust Of India in the financial year 2009-2010. The intial investment was in the name of my minor daughter and payment was received in her name only. What about Capital Gain Tax, Please guide me.
mujhe capital gain me rupees invest karna hai allahabad bank ne mujhe kaha main usake yaha capital gain a/c open kar ke fix deposit kara du i.t us capital gain tax exemption (sec. 54eb)
kya is sec ke tahat exemption mujhe milega
ya main 54EC me rec,nhai bond me invest karu mere paas time kafi kam hai meri agricalture land thi jise maine sale kiya
so plz help me kya ye sec se exemption it me mujhe milega
plz reply