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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