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:
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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:
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State Bank of India
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State Bank of Bikaner & Jaipur
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State Bank of Hyderabad
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State Bank of Indore
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State Bank of Mysore
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State Bank of Patiala
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State Bank of Saurashtra
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State Bank of Travancore
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Central Bank of India
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Bank of India
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Punjab National Bank
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Bank of Baroda
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UCO Bank
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Canara Bank
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United Bank of mci
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Dena Bank
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Syndicate Bank
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Union Bank of India
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Allahabad Bank
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Indian Bank
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Bank of Maharashtra
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Indian Overseas Bank
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Andhra Bank
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Corporation Bank
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New Bank of India
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Oriental Bank of Commerce
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Punjab & Sind Bank
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Vijaya Bank
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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.
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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.
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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.
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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.
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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.
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