Sbi capgains plus capital gain scheme 1988 deal4loans. All you need to know about capital gain account scheme the. Capgains plus, under the capital gains account scheme, 1988 and be eligible to claim exemption of long term capital gains tax on sale of capital assets. Details regarding the manner and extent of utilisation of the amount withdrawn from account under the capital gains accounts scheme, 1988. Salient features under this scheme the tax payers can avail of the benefit of exemption from capital gains or the net consideration is deposited in our bank on or before their due date of filing a return of income. In exercise of the powers conferred by subsection 2 of section 54, subsection 2 of section 54b, subsection 2 of section 54d, subsection 4 of section 54f and subsection 2 of section 54g of the incometax act, 1961 43 of 1961, the central government hereby frames the following scheme. It has been brought to the notice of cbdt that in cases of deceased depositor who has made deposits under the capital gains accounts scheme, 1988. As per the provisions of this scheme, mr chaudhury can park his funds in this account and keep them outside the ambit of taxation if he opens the capital gains account within the last date of filing his income tax returns. Mainly, the advantage of capital gains account scheme can be derived by individuals and hindu undivided family. The income tax act of india allows certain exemptions on longterm capital gain schemes under sections 54, 54b, 54d, 54f and 54g, which are not provided on short term capital gain.
I am reproducing my answer to a similar question what is a capital gains account scheme. To be eligible for this exemption, account must be opened and funds must be deposited therein before the due date of filing of the sellers income tax return for the relevant financial year. We will be telling you in detail about the scheme, eligibility, opening the account, the types of account and many other things. Interest on deposits is payable either monthly at discounted value or quarterly or compounded quarterly i. Capital gains accounts scheme, 1988 tax management india. Application for withdrawal of amount from accounta under the capital gains accounts scheme, 1988. A capital gains savings account is similar to the regular savings account in any bank. Gains account scheme, 1988 see sub paragraphs 1 of paragraph 9 name of the deposit office serial no. These regulations provide for certain unauthorised unit trust schemes to be excepted from the definition of unit trust scheme for the purposes of capital gains tax given by section 921a of the capital gains tax act 1979 section 921a. Withdrawal of amount from capital gain account scheme, 1988. Capital gains accounts scheme how to open tax benefits. Opening a bank account for capital gains account scheme once the deposit is made by you either in the savings account or in the fixed deposit account, please ensure that it is clearly mentioned in the account opened that it is for capital gains account scheme. Latest and breaking news on capital gains account scheme.
Understanding the provisions of capital gains chargeability conditions, meaning of capital asset, short term capital gain and long term capital gain. Capital gain deposit account scheme all you want to know. What investors needs to know about capital gains account. As mentioned above, the time limit available to the depositor for reinvestment and avail the exemption, in many cases is longer than the due date to file the return of income. Capital gains account scheme to save tax indian express. The capital gains account scheme was introduced in the year 1988, and as per the capital gains account scheme the amount of capital gains to be claimed as. Explore capital gains account scheme profile at times of. The capital gains tax definition of unit trust scheme. Application for closing the account under the capital gains accounts scheme, 1988 by the depositor. The capital gains accounts scheme, 1988 scheme notified vide notification nos.
It is important to know if the type of gain is a short term capital gain or a long term gain and pay the tax accordingly. Capital gain deposit account scheme is applicable for taxpayers who would like to purchase a new property to claim exemption us 54. The capital gain account scheme helps you avail tax exemptions from capital gains, with two types of accounts, savings and term deposit. Section 54 of the income tax act provides exemption from tax on longterm capital gains arising out of sale of house if the gains are invested in purchase of another house either a year before or within two years from date of transfer, or used for construction of a house within three years of date of transfer. To be more precise, all those tax payers who would like to invest in buying a residential property or in constructing a residential property so as to save tax in respect of longterm capital gain can find much advantage in this scheme known as capital gains accounts scheme 1988. As per the provisions of this capital gain account scheme, mr chaudhury can park his funds in this capital gain account and keep them outside the ambit of taxation if he opens the capital gains account within the. Capital gains accounts scheme, 1988 to the branch manager, state bank of india.
Later, you can withdraw the money for purchasing or constructing a new house. Form of nomination under the capital gains accounts scheme, 1988. Capital gain account scheme 1988, as the name suggests, was introduced in the year 1988 to provide a facility to people to take advantage of long term capital gain tax benefits under section 54, 54b, 54d, 54f and 54 g. All you need to know about capital gain account scheme.
It may be difficult to arrive at a purchase or construction decision before filing. The capital gains account scheme was introduced in the year 1988, and as per the capital gains account scheme the amount of capital gains to be claimed as an exemption should be either be reinvested or deposited in the capital gains account before the due date of filing of returns. Any profits or gains arising from the transfer of a capital asset effected in the. Capital gains accounts scheme, 1988 gsr 724e, dated 22. Page 1 of 2 form d see subparagraph 3 of paragraph 9 to be submitted in duplicate name of the deposit office serial no. A large number of tax payers commit the mistake of just opening a bank account. The amount withdrawn from the capital gains account scheme 1998 and which was claimed as an exemption under section 54f in ay 1112 will. This scheme was started in 1988, and the account can be opened in any of the 28 banks notified by the government.
You can deposit the unutilized money in a capital gains account with a bank. As mentioned above, the time limit available to the depositor. In layman terms, if you have sold a property and long term capital gain is arising from the transaction. Capital gains account scheme was introduced in 1988 by the central government. Pnb capital gain account pnb account pnb gain account. Cgas allows you to park sale proceeds of a property without capital gains tax liability, provided another property is bought within 2 yrs of sale or built within 3 yrs of the sale. Capital gains accounts scheme, 1988 to the manager. Central board of direct tax cbdt has issued notification no. As substituted by section 403 of the finance act 1987, that section provides that unit trust scheme is to have the same meaning as in the. The scheme is applicable to all assessees having capital gains. The scheme is called capital gains account scheme, 1988. Capital gain account scheme 1988 cgas, is a facility available to you to take advantage of long term capital gai.
Sbi capgain plus is a scheme where you can reinvest your money in a residential property or any other specifed assest within the guaranteed time period in order be free from a payment of long term capital gains tax. Withdrawal of amount from capital gain account scheme. The deposits may be made in one lump sum or in installments at any time. What every investor needs to know about capital gains. To, the branch manager state bank of india passport size aged years hereby apply for opening.
Revision of interest rates on the deposits made in account a 5% and account b 5% to 8% under the capital gains accounts scheme. Faq on capital gains tax and capital gains exemption. What would be taxability of unutilized deposit under the capital gains account scheme, 1988 in the hands of legal heirs of assess. The capital gains accounts scheme, 1988 scheme for short has been framed by the central government by virtue of powers conferred by sec. Scheme1988 capital gains accounts scheme1988 for saving long term capital gain tax, in exercise of the powers conferred by subsection 2 of section 54, subsection 2 of section 54b, subsection 2 of section 54d.
Fintotal knowledge capital gains accounts scheme cgas. Section 54g capital gain on account of transfer of machinery, plant or business or land of and industrial undertaking situated in an urban area for shifting of even. Capital gains accounts scheme launched in 1988 is an account you open with an authorized bank where you can deposit the money from long term capital gains which will be used for building or buying a house to avail capital gains tax exemption under section 54 or 54f of the income tax act. As per thecapital gains account scheme cgas, chaudhury can keep the funds outside the ambit of taxation if he.
Accounts under capital gains accounts scheme, 1988 form a central office is in the process of revising the account opening forms, when advised so branches should obtain the new application forms. Rationalisation of interest on deposits under capital. Gold deposit bonds under gold deposit scheme, 1999. Capital gains account scheme 1988 as notified by central government gsr 724e, dated 2261988 the forms compiled by finotax in fillable pdf and or excel format, which can be filled on computer before print. The government has identified the following 28 banks to accept the deposit under capital gains accounts scheme 1988. Individuals and members of huf hindu undivided family can benefit from capital gains account scheme cgas. Capital gain account scheme 1988 cgas, is a facility available to you to take advantage of long term capital gain tax benefits under section 54, section 54b, section 54d, section 54f and section 54g. Capital gain account scheme 1988, as the name suggests, was introduced in the year 1988 to provide a facility to people to take advantage of long term capital.
How to make the most of capital gains account scheme. The capital gains accounts scheme, 1988 scheme for short has been framed by the central government by virtue of powers conferred by. Application for opening an account under the capital gains accounts scheme, 1988. Funds can be withdrawn from cgas account only for purchase or construction of house. Application for withdrawal of amount from accountsa under. Any profits or gains arising from the transfer of a capital asset effected in. Interest rates on deposits capital gains accounts scheme, 1988. The capital gains accounts scheme 1988 by puneet gupta. Page 1 of 1 form g see subparagraph 1 of paragraph to be submitted by the depositor. Basically, all those taxpayers who want to buy or construct a residential property to save income tax can benefit from cgas 1988. The income tax act of india had foreseen such an eventuality and has thus launched the capital gains account scheme cgas in 1988. In exercise of the powers conferred by subsection 2 of. If any investment with respect to purchase of a property is made within two years from the date of.
Cbdt has clarified the above query vide circular no. How to calculate capital gains on property sale at the time of a property sale, you are expected to pay tax for the profit gained from the sale of the property. What is the capital gains account in india, and what is. T act 1961 by any depositor intending to avail of the benefit under the said section or sections of the act, as the case may be, in accordance with the provisions of this scheme. The capital gains account scheme cgas was initiated by the government in 1988 and is meant to help those who are not able to reinvest their real estate sale proceeds in a new residential. A deposit or deposits may be made under the provisions of section 54, 54b, 54d, 54f or 54g of the i.
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