Capital Gain Account Scheme

Features of the scheme

1. ELIGIBILITY

The accounts can be opened by depositors means an assessee who is eligible to make a deposit under Section 54, 54-B, 54-D, 54-F, 54GB and 54-G of the Income Tax Act.

2.DEPOSIT AMOUNT 

The Capital Gain Term Deposit account can be opened with a minimum deposit of Rs.1000/- and thereafter in multiples of Re.1/- with no ceiling of maximum amount.

3.PERIOD OF DEPOSIT

Maximum Tenor: not exceeding 2 to 3 years from date of transfer of original asset as given below:

  • Max 24 months – If capital Gains is u/s 54, 54B, 54F of IT Act (as declared in form A by depositor)
  • Max 36 months – If capital Gains is u/s 54, 54D, 54F, 54G & 54GB of IT Act (as declared in form A by depositor).

Minimum Tenor

  • Maturity Option: 7 days,
  • Income Option: 6 months.

After tenor FD shall be auto closed.

4. INTEREST 

The rate of interest shall be Card Rate payable in accordance with the circulars issued by the Bank from time to time.

Higher/differential rate of interest to staff as well as sr. citizen: Under the scheme no additional rate of interest will be given on deposits held under Capital Gain Accounts Scheme 1988 received from Sr. Citizens as well as staff members.

5. PREMATURE WITHDRAWAL OF DEPOSIT

1% penal interest shall be charged at the time of premature cancellation of domestic term deposits for all tenors and interest rate payable would be contractual rate minus 1% or the rate under the scheme on the contractual date applicable for the tenor for which the deposit has actually run minus 1%, whichever is lower.

6. FIXED DEPOSIT UNDER INCOME OPTION:

The depositor has the option to draw interest on quarterly basis or on maturity. However, the payment of interest shall be done through Saving Bank Capital Gain account. The depositor having Saving Fund Capital Gain account may, at any time after making the initial subscription, if he so desires, may apply in Form C, together with the Passbook to the branch for the withdrawal of amount, subject to the other provisions of this Scheme.

7. LOAN FACILITY

No loan facility against this deposit is available. The term deposit can neither be accepted as margin money for non-fund based nor as collateral to any type of fund-based facilities.

8. INTEREST CERTIFICATE 

Interest Certificate may be issued to the depositor in respect of the amount actually credited/accrued in the depositor’s account during the year.

9. TAX DEDUCTION AT SOURCE

As per instructions issued by Finance Division, HO from time to time, branches are required to deduct income tax (if applicable) at the time of payment or credit of interest to the depositor’s account.

The account can be opened in all the branches except Rural Branches. The Single Capital Gains Term Deposit of above Rs. 25 crore shall be accepted at identified branches only

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