Union Bank of India- Product


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Profit or gains arising out of sale / transfer of a capital asset is chargeable to tax under head “Capital gain”. Under the scheme, the tax payers can avail of the benefit of exemption from capital gains only if the amount of capital gains or the net consideration if not invested in specified assets is deposited in branches of Public Sector Banks on or before the due date for filing a return of income in accordance with the scheme. However, the tax exemption for the capital gains deposited in the account is transitory in nature. The account holder has to invest the balances in the account in the specified assets within the period stipulated for availing exemption from tax on capital gains.


a) The deposits can be made under Savings Bank Account Scheme (Account-A) or under Term Deposits with Cumulative interest or non-cumulative interest (Account-B).

b) There is no maximum period of deposit under the scheme. However, the assesse has to utilise the balances in the account within the time stipulated under the Income Tax Act by investing the same in specified assets failing which the balances will attract income tax.

c) Interest will be paid on the deposits as per the rates stipulated by R.B.I. Interest on Term Deposits under non-cumulative scheme will be credited to a Savings Bank Account of the assesse under Account -A.

d) The balances under Term Deposit Accounts (Account-B) can be withdrawn only through Savings Bank Account (Account-A). Except the initial withdrawal, for all other withdrawals the account holder has to give an utilisation certificate in the prescribed format.

e) No lien or charge can be created on the balances under the accounts.

f) The assesse has to use the prescribed formats for opening the account, for withdrawals from the account and for closing the account.

g) Introduction of the account holder need not be insisted.

h) Nomination facility is available under the scheme.

i) NRE funds are not eligible for investment under this Scheme.