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HUF -  Capital Gain Account

This is another type of Account which can be opened by HUF assesses in order to avail exemption in respect of Capital gains arising to them under Section 54, 54D, 54F or 54G of the Income-tax Act, 1961 .The account to be opened in such a case is governed by the Capital Gains Accounts Scheme, 1988 which was notified by the Centra.l Board of Direct Taxes vide Notification No. 724(E) dated 221Id June, 1988. The salient features of such an account are as follows:


1.         The said account can be opened with all scheduled Banks and In this regard, a Notification No. 725(E) dated 22nd June,1988 has been issued

 

which authorizes all the branches of 28 banks as follows(except rural branches) to receive deposits under the said scheme. The ljst of the Bank is as follows:

 
i)          State Bank of India
ii)         State Bank of Bikaner & Jaipur
iii)        State Bank of Hyderabad
iv)        State Bank of Indore
v)         State Bank of Mysore
vi)        State Bank of Patiala
vii)       State Bank of Saurashtra
viii)      State Bank of Travancore
ix)        Central Bank of India
x)         Bank of India
xi)        Punjab National Bank
xii)       Bank of Baroda
xiii)      UCO Bank
xiv)      Canara Bank
xv)       United Bank of mci
xvi)      Dena Bank
xvii)     Syndicate Bank
xviii)    Union Bank of India
xix)      Allahabad Bank
xx)       Indian Bank
xxi)      Bank of Maharashtra
xxii)     Indian Overseas Bank
xxiii)    Andhra Bank
xxiv)    Corporation Bank
xxv)     New Bank of India
xxvi)    Oriental Bank of Commerce
xxvii)   Punjab & Sind Bank
xxviii) Vijaya Bank

 

It is further stated in the said notification that a rural branch in relation to a bank means a branch which is situated and is functioning at a centre, the population whereof, in accordance with the 1981 census, is less than ten thousand.


2.         There are two types of Account that can be opened under this Scheme and they are Account- A and Account-B. Account-A represents a Savings account and Account-B represents a term deposit account.


3.         It is to be noted that the deposit under the scheme has to be made within the due date of filing of return as applicable to the assessee in order to save the capital gains tax and therefore care must be taken to adhere to the date of opening the account and placing the deposit under the scheme.


4.         The withdrawals from this account are permitted for the purpose of utilization in accordance with the respective Section under which the account has been opened.


5.         The account can however be closed only with the permission of the Assessing officer   who has the jurisdiction over the assessee by making an application in Form No. G.
 
HUF -  Public Provident Fund ( PPF ) Account
HUF -  Deduction from HUF Business Income
 
 
 
 
 
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