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:
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:
State Bank of India
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Central Bank of India
Bank of India
Punjab National Bank
Bank of Baroda
United Bank of mci
Union Bank of India
Bank of Maharashtra
Indian Overseas Bank
New Bank of India
Oriental Bank of Commerce
Punjab & Sind 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.
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.
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.
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.
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.
Taxation in Business & Profession [Section 28 to 44]
Computation of income under the head 'Profits and Gains of Business or Professions' [Section 28 to 44]
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