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Captain gain tax
2 weeks ago
I sold a plot of land and within one year I will buy a house so that capital gain tax would be exempt. But until I buy a house can I invest the money in fixed deposit
A.Dear Client,
The Capital Gains Account Scheme, introduced in 1988 by the Central Government, is a fixed deposit account with select banks, used solely for exemption under Section 54 of the Income Tax Act. Participating banks include Syndicate Bank, Central Bank of India, IDBI Bank, Bank of Baroda, State Bank of India, and Corporation Bank. To open an account, visit authorized branches with necessary documents. The account can't be held for more than 2-3 years from the asset transfer date. Interest, currently at 7.15% per annum, is compounded quarterly and credited quarterly. Taxpayers liable for capital gains tax can deposit unutilized gains in this scheme before filing income tax returns if they can't reinvest the gains within the specified time frame.
The Capital Gains Account Scheme, introduced in 1988 by the Central Government, is a fixed deposit account with select banks, used solely for exemption under Section 54 of the Income Tax Act. Participating banks include Syndicate Bank, Central Bank of India, IDBI Bank, Bank of Baroda, State Bank of India, and Corporation Bank. To open an account, visit authorized branches with necessary documents. The account can't be held for more than 2-3 years from the asset transfer date. Interest, currently at 7.15% per annum, is compounded quarterly and credited quarterly. Taxpayers liable for capital gains tax can deposit unutilized gains in this scheme before filing income tax returns if they can't reinvest the gains within the specified time frame.
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A.Dear Client,
The Capital Gains Account Scheme was introduced in 1988 by the Central Government. It is a Fixed Deposit account with a Bank which can be utilized only for the purpose of the exemption claimed under Section 54 of the Income Tax Act. Syndicate Bank, the Central Bank of India, IDBI Bank, Bank of Baroda, State Bank of India and Corporation Bank are a few of the banks that participate in this scheme. Capital gain accounts can be opened by visiting the authorized branches of the Bank along with the required documents. You cannot keep this FD account for more than 2 to 3 years from the date of transfer of the original asset. The interest rate on Capital Gain Account Scheme (CGAS) is determined by the government and is currently set at 7.15% per annum. The interest rate is compounded quarterly and is credited to the account at the end of each quarter. Any person liable to pay capital gain tax shall deposit in Capital gain account scheme if he is not able to re-invest the gains earned in investments as specified under the time limit for making such investments. The taxpayer shall deposit such unutilized gain before filing of return of income.
The Capital Gains Account Scheme was introduced in 1988 by the Central Government. It is a Fixed Deposit account with a Bank which can be utilized only for the purpose of the exemption claimed under Section 54 of the Income Tax Act. Syndicate Bank, the Central Bank of India, IDBI Bank, Bank of Baroda, State Bank of India and Corporation Bank are a few of the banks that participate in this scheme. Capital gain accounts can be opened by visiting the authorized branches of the Bank along with the required documents. You cannot keep this FD account for more than 2 to 3 years from the date of transfer of the original asset. The interest rate on Capital Gain Account Scheme (CGAS) is determined by the government and is currently set at 7.15% per annum. The interest rate is compounded quarterly and is credited to the account at the end of each quarter. Any person liable to pay capital gain tax shall deposit in Capital gain account scheme if he is not able to re-invest the gains earned in investments as specified under the time limit for making such investments. The taxpayer shall deposit such unutilized gain before filing of return of income.
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