A person who is liable to pay tax on the capital gain due to sale of some capital asset can claim exemption as specified if he invests in buying or constructing a new property or agricultural land within a specified time. However if he wishes to invest but has not been able to find a suitable deal he can deposit the amount in a special account known as Capital Gains deposit Accounts scheme of a bank before the due date of filing his return of income. Due date for filing income tax return in respect of assessment year 2013-14 for non-audit cases is 31.07.2013
In this post we are covering briefly three topics related to 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
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
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:
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?
tax 'N' accounts people
Tarun Kumar Gupta
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