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Under this scheme, the tax payers can avail of the benefit of exemption from Capital Gains, if the amount of Capital Gains or the net consideration is deposited in the bank on or before the due date of filling the return of income.
Features:
Eligibility
Assesses who are eligible for exemption under section 54,54B, 54D, 54F or 54G of the income tax act 1961. (Depositors themselves have to verify whether the scheme applies to them or not). Can be opened in any branch other than rural branch.
Scheme Code
TDN08-NRO Capital Gain DRIC TDN07-NRO FDR CAP GAIN
Scheme Details
Under this scheme, the tax payers can avail of the benefit of exemption from Capital Gains or the net consideration is deposited in the bank on or before the due date of filling the return of income.
Type of Accounts
Deposit made under this account will be in the form of term Deposits, with an option to retain the deposit either as “cumulative”i.e. similar to DRC Deposit(with Interest reinvested) or as non-cumulative i.e. similar to Fixed Deposit.
Period of Deposit
Not exceeding 2 to 3 years from the date of transfer of original asset as given below
MAX 24 months- If capital gain is U/s 54, 54B, 54F. (As declared in Form A by depositor) Max 36 Months- If Capital Gain is U/s 54, 54D,54F,54G & 54GB( As declared in Form A by depositor)
Minimum Deposit Amount
Rs. 1000/- in case of Capital Gains Term Deposits
Maximum Deposit Amount
No upper ceiling for Maximum Balance/Amount
TDS
TDS will be deducted as per guidelines
Rate of Interest
Prevailing term Deposit Interest as per tenure
Interest Payment Frequency
Will be paid on quarterly or half yearly interval as per the choice of the customer if the deposit is renewed in FDR balance, in case of DRIC , interest is paid on maturity along with principal.
Loan Facility
Not available
Nomination
Available as per guidelines
Automatic Renewal
Not Allowed
Premature Closure/ Closure of Account
Closure of Term Deposit allowed before maturity. (Proceeds to be credited to Cap Gains SB account- Account-A only). At the time of closure of all accounts, the depositor will have to produce specific authority letter/certificate from the income Tax Officer of the respective jurisdiction. The closure would be allowed on the terms mentioned in the letter of authority.
Penalty on Premature Closure
As per guidelines