Capital Gain Account Scheme - 6 Smart Features

Capital Gain Account Scheme -  6 Smart Features..!

1. Capital Gain Account Scheme (CGAS) allows you to park sale proceeds of a property without capital gains tax liability, provided another property is bought within 2 years of sale or built within 3 years of the sale.

2 .To be eligible for this exemption, account must be opened and funds must be deposited therein before the due date of filing of the seller's income tax return for the relevant financial year.

3 . The account under CGAS must be opened with an urban or metro branch of any bank pre-specified by the government.

4 . Sellers may open a Type A or / Type B account. Type A works like a savings account and is suitable for those constructing a property.Type B works like a fixed deposit.



5. You can withdraw from CGAS by submitting an application in prescribed form. The funds must be utilized for payment towards property within 60 days of withdrawal.

6. Any unutilized funds lying in the account at the end of the prescribed period will be liable to income tax as capital gains.

Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.



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