- Calculation of Amount required to be deposited under capital gain account scheme.
- Due date to deposit the unutilised amount in capital gain account scheme.
- Brief features of the Capital gain account Scheme
Benefit of Capital gain scheme can be availed under Section 54 ,Section 54B,Section 54D,Section 54G , Section 54GA and Section 54F. To avail full capital gain exemption unutilised amount as calculating below ,is required to be deposited in capital gain account scheme. There is general confusion that which amount is required to be deposited under capital gain account scheme.so the same has been defined under following two heads .
1. To avail benefit under Section 54 ,Section 54B,Section 54D,Section 54G , Section 54GA
- Amount of Capital gain minus amount utilised to purchase/construct new asset =Amount required to be deposited in capital gain account scheme.
- Net sale proceed of long term capital asset sold minus amount utilised =Amount required to be deposited in capital gain account scheme.
- Sale proceed of old Capital assets : Rs 50,00,000
- Exp. incurred ..........................,.....: Rs 1,00.000
- Cost of Asset Sold ........................: Rs 20,00,000
- Indexed Cost of Asset Sold ...........: Rs 32,00,000
- Amount utilised to purchase/construct new asset : Rs 10,00,000
Net sale proceed : 50,00,000(gross)-100000(Exp.)=Rs 49,00,000
less :Indexed cost of capital asset sold ....................=Rs 32,00,000
Capital Gain :(49,00,000-32,00,000).....................=Rs 17,00,000
- From above figures Amount required to be deposited under section 54,54B,54D,54G,54GA= (Capital gain amount minus amount utilised )=Rs 17,00,000 -10,00,000=Rs 7,00,000. Under these section assessee can use balance amount (49,00,000 -10,00,000-7,00,000=32,00,000) as he wish .
- From above figures Amount required to be deposited under section 54F= (Net sale proceed minus amount utilised )=Rs 49,00,000 -10,00,000=Rs 39,00,000
Unutilised amount as calculated above should be deposited in capital gain account scheme before filing of Income tax return due date.
Example : Suppose in above case ,old asset was sold on 15.04.2012 and assessee is salaried individual . The due date of income tax tax return is 31.07.2013.So person should deposit unutilised amount before 31.07.2013.
If you have sold any capital asset during financial year 2012-13 and want to avail the benefit of under Section 54 ,Section 54B,Section 54D,Section 54G , Section 54GA and Section 54F ,then act fast and deposit the balance amount in capital gain account scheme.
Note : In recent judgement Court has considered due date for filing till the end of assessment year ,i.e up to 31.03.14 .But you should rely on these Judgments only after going through full fact and figures.
3.Brief features of the Capital gain account Scheme
This scheme is available in all the major banks so inquire about the scheme from your nearest branch.
There will be two types of deposit accounts:
- A- This account will be in the form of Saving Account.
- B- This account will be the form of Term Deposit Account (cumulative as well as non cumulative).
Transfer of the Account:
Both the accounts, i.e., Account-A and Account-B can be transferred from one deposit office to another deposit office of the same Bank.
Premature withdrawal is permitted before expiry of the period for which deposit was made; rate of interest on such deposits shall be as applicable to period for which deposit remained with deposit office, as a penalty for pre-mature withdrawal.
Withdrawal from the account:
Depositor having Account-A, at any time after making initial deposit, can apply on Form ‘C’ with Pass Book for withdrawal of amount.
Depositor intending to make withdrawal from his Account-B shall fit get his account transferred in his account-A.
– Withdrawal for more than Rs. 25,000/-, will be allowed through crossed demand draft.
Utilization of amount of withdrawal: At the time of any withdrawal from Account-A other then the initial
withdrawal, depositor shall furnish in Form ‘D’, in duplicate, the details regarding manner and extent of utilization of amount of immediately preceding withdrawal.
Change or alienation: Amount standing to the credit of the depositor in any account under the Scheme shall not be offered as security for any loan or guarantee and shall not be charged or alienated in any manner, whatsoever.
The Bank will deduct tax on interest as per income tax provisions and issue TDS Certificate for the tax deducted.
How can I close this account?
- Closure By depositor :If a depositor desires to close his account, he shall have to apply to deposit office on Form ‘G’ along with the approval of the Assessing Officer with the Pass Book/Deposit Receipt. Deposit office shall pay the amount of balance including interest accrued to depositor.
- Closure by nominee:Seek the approval of the assessing officer in Form H who has jurisdiction over deceased depositor and submit to bank.
- Closure by legal heir:Seek the approval of the assessing officer in Form H who has jurisdiction over deceased depositor and submit to bank and also submit the disclaimer by other heirs .Remember however, if there is more than one heir , the assessing officer will give approval only after getting the a succession certificate or a probate of a will or a letter of administration to the estate of the deceased.