{"id":385,"date":"2022-03-05T08:17:56","date_gmt":"2022-03-05T08:17:56","guid":{"rendered":"https:\/\/pkchopra.com\/blog\/?p=385"},"modified":"2024-03-12T10:15:40","modified_gmt":"2024-03-12T10:15:40","slug":"capital-gain-account-scheme","status":"publish","type":"post","link":"https:\/\/pkchopra.com\/blog\/index.php\/capital-gain-account-scheme\/","title":{"rendered":"Capital Gain Account Scheme"},"content":{"rendered":"

Capital Gain Account Scheme was introduced in 1991.It scheme allows individual\u00a0 to park their capital gains until the point when they can be reinvested in assets specified in Sections 54 & 54F of the Income Tax Act, 1961, protecting their capital gains.<\/p>\n

It allows us to make you eligible for the capital gains exemption you will receive once you reinvest & deposit the underutilized capital gains.<\/p>\n

It allows individual to safeguard their long- term capital gains until they are able to invest it in a house before the due date for filling income tax return. However, the Capital Gain Account Scheme facility is not available in the rural branches of these banks.<\/p>\n

Types of Capital Gain Account Scheme:
\n<\/strong>CGAS come into 2 categories:<\/p>\n

    \n
  1. Savings<\/li>\n
  2. Term Deposit<\/li>\n<\/ol>\n

    CGAS TYPE 1- Savings Account
    \n<\/strong>A capital gains saving account is similar to the regular saving account in any bank. The amount deposited in this account will have high liquidity & can be withdrawn any time. You will receive a passbook that has records of all transactions \u2013 deposit, interest received, withdrawals- made in the account.<\/p>\n

    CGAS TYPE 2- Term Deposit Account
    \n<\/strong>A capital gains term deposit account is similar to the fixed deposit schemes of bank. Its account also offers cumulative & non-cumulative options.<\/p>\n

    A non-cumulative scheme, on the other hand, allow you to withdraw or receive the interest at regular intervals- quarterly, half- quarterly, half yearly or annually.<\/p>\n

    In the cumulative option, the interest amount is added to reinvest & the term deposit, thereby adding to the total interest accrued.<\/p>\n

    Deposit in the capital gain account Scheme:<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
    Section No.<\/strong><\/td>\nCapital gains made on<\/strong><\/td>\nCategory of taxpayer<\/strong><\/td>\n<\/tr>\n
    54<\/td>\nSale of a residential house<\/td>\nHUF or individual<\/td>\n<\/tr>\n
    54B<\/td>\nSale of land used for agriculture<\/td>\nHUF or individual<\/td>\n<\/tr>\n
    54D<\/td>\nCompulsory acquisition of building and land<\/td>\nAny taxpayer<\/td>\n<\/tr>\n
    54E<\/td>\nSale of long-term capital assets<\/td>\nAny taxpayer<\/td>\n<\/tr>\n
    54EC<\/td>\nSale of long-term capital assets such as \u00a0land or building or both<\/td>\nAny taxpayer<\/td>\n<\/tr>\n
    54F<\/td>\nSale of long-term capital asset that is not a residential building<\/td>\nHUF or individual<\/td>\n<\/tr>\n
    54G<\/td>\nWhen shifting of an industrial facility from an urban area, the transfer of assets such as plant, building, land, machinery, or right in building or land<\/td>\nHUF or individual<\/td>\n<\/tr>\n
    54GA<\/td>\nWhen shifting of an industrial facility from an urban area to a Special Economic Zone (SEZ), the transfer of assets such as plant, building, land, machinery, or right in building or land<\/td>\nHUF or individual<\/td>\n<\/tr>\n
    54GB<\/td>\nTransference of residential property<\/td>\nHUF or individual<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0<\/strong>Procedure to open capital gains account & manner of deposit:<\/strong><\/p>\n

      \n
    1. The deposit can be made in either in instalments and lump sum.<\/li>\n
    2. Separate applications shall be made for availing exemption under different sections & separate CGA shall be opened.<\/li>\n
    3. Documents such as proof or address, PAN, a photograph would be required.<\/li>\n
    4. CGA can be opened by making an application in duplicate in Form A.<\/li>\n
    5. Deposit can be made by any made such as cheque, cash, demand draft etc. In case of cheque or deposits or DD, date of deposit office subject to its realisation.<\/li>\n
    6. Separate Application shall be made for availing exemption under different sections & separate capital gain accounts shall be opened.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

      Capital Gain Account Scheme was introduced in 1991.It scheme allows individual\u00a0 to park their capital gains until the point when they can be reinvested in assets specified in Sections 54 & 54F of the Income Tax Act, 1961, protecting their capital gains. It allows us to make you eligible for the capital gains exemption you …<\/p>\n","protected":false},"author":1,"featured_media":386,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Capital Gain Account Scheme | Blog | PK Chopra & Co. ","_seopress_titles_desc":"Do you want to Know about Capital Gain Account Scheme, Types , Procedure to open capital gains account and manner of deposit","_seopress_robots_index":""},"categories":[12],"tags":[251,253,254,255,252],"_links":{"self":[{"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/385"}],"collection":[{"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=385"}],"version-history":[{"count":2,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/385\/revisions"}],"predecessor-version":[{"id":388,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/385\/revisions\/388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/386"}],"wp:attachment":[{"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pkchopra.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}