Do You Know About Capital Gains Account Scheme- G Bajpai Chartered Accountants Lucknow


Do you know you can park your Capital Gains in an account until the point of re-investment?

Capital Gains Account Scheme helps you do the same.

-The Capital Gains Account Scheme allows individuals to park their capital gains until the point when they can be re-invested in assets specified in Section 54 and Section 54F of the Income Tax Act, 1961, protecting their long-term capital gains.

-You can open a Capital Gains Account in any branch of the authorized banks, except for their branches in rural areas.

-Deposits can be of two types:

1. Type A: Referred to as a savings deposit, this capital gains account is similar to a regular savings account. It even earns a similar interest rate.

2. Type B: Referred to as term deposits, this type of deposit is similar to fixed deposit schemes of banks. This type of account has a maximum term of 3 years, and it will not auto-renew at the end of the term.

-Terms of withdrawal:

The money withdrawn has to be reinvested in a specific investment within 60 days of the withdrawal or immediately redeposited in a type A account.

-Tax implications:

When filing your returns, it's mandatory to attach the deposit proof to be exempted. If you have underutilized any amount beyond the 60-day mark / beyond the specified time limit, the amount is taxable. The interest earned on both types of deposits is taxable.

Know More


CA firm in LucknowITR Filling in Lucknowchartered accountants in Lucknow

Location: 11th Floor, Wing A, Summit Building, Vibhuti Khand, Gomti Nagar, Lucknow, Uttar Pradesh 226010, India

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