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image  CAPITAL GAIN SCHEMES


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