SBI Capgains Plus
SBI Capgains Plus (Capital Gain Scheme 1988)
If a person sold a plot of land or a flat or any such property, he would be liable to pay Long Term Capital Gains Tax. Section 54 of the Income Tax Act provides an exemption from tax on long-term capital gains arising out of the sale of a property, if the gains are invested in purchase of another property either a year before or within two years from the date of transfer or used for the construction of a house within three years of date of transfer. The assessee can avail exemption by depositing the capital gains in an SBI‘s CapGains Plus account, opened under the Capital Gains Account Scheme, 1988 and be eligible to claim exemption of Long Term Capital Gains Tax on the sale of Capital Assets. In this article, we will look at SBI Capgains Plus (Capital Gain Scheme 1988) in detail.
Benefit of SBI Capgains Plus
The benefit of SBI Capgains Plus (Capital Gain Scheme 1988) is listed as follows:
- Adequate time to acquire the new asset
- The applicant can earn interest at Savings Bank or Fixed Deposit rates
The SBI Capgains Plus scheme is applicable for the following persons:
- Resident Individuals, Body of individuals
- Non-resident Indians (NRIs)
- Non-individuals like Hindu Undivided Family (HUF), Sole Proprietorship firm, Partnership firm, Companies and Association of persons
- Resident but not Ordinary Resident (RNORs)
- Artificial Judicial persons who have capital gain taxable in India
Type of Accounts
Following types of accounts are available for eligible applicants under the SBI Capgains Plus (Capital Gain Scheme 1988):
- Savings Bank Account (Deposit Account-A)
- Term Deposits (TDR / STDR) (Deposit Account-B)
The minimum amount to be deposited in the SBI Capgains Plus account is Rs. 1,000 in case of the CapGains Term Deposits.
Note: For maximum balance/amount, there is no upper ceiling in SBI Capgains Plus (Capital Gain Scheme 1988).
Period of Deposit
The period of deposit should not exceed 2 to 3 years from the date of transfer of an original asset as given below:
- Max 24 months – If capital gains are under section 54, 54B, 54 F of the Income Tax Act (As declared in Form A by depositor)
- Max 36 months – If capital gains are under section 54, 54 D, 54 F, 54 G and 54GB of the Income Tax Act (As declared in Form A by depositor)
As applicable to normal Savings Bank account or Term Deposits for respective maturities of Retail and Bulk deposits. No additional interest rate benefit is provided for Senior Citizens or Staffs.
The SBI Capital Gains Deposit Scheme is operative at all branches of SBI except Rural branches.
Closure of TDR/ or STDR (Account – B) allowed before maturity. Proceeds to be credited to the CapGains SB Account-Account- A only.
At the time of closure of all SBI Capgains Plus accounts, the depositor will have to produce specific authority letter or certificate from the Income Tax Officer of the respective jurisdiction. The closure will be allowed on the terms mentioned in the letter of authority.
No loan facility against this SBI Capgains Plus deposit scheme is available. This term deposits can neither be accepted as margin money for non-fund based nor as collateral to any fund-based facilities.
The applicant needs to submit an application form in prescribed format to open an account under the SBI Capgains Plus (Capital Gain Scheme 1988) scheme:
We have here with attached an application form for SBI CapGains Plus scheme.Application for SBI CapGains Plus-Form-A
Provide all details in the application form and submit the form to respective SBI branch.
Note: The Capital Gains Deposit Scheme is operative at all branches of SBI except Rural branches.
In case you are not an SBI customer please open an account with SBi and then submit the application form for the CapGain Plus scheme.
Nomination facility is available for the deposit. The beneficiary can nominate upto three nominees.
Transfer of account
The SBI CapGain Plus scheme account can be transferred from one branch to another branch.
Issue of Duplicate Pass Book
In the event of destruction or loss of passbook or receipt, the branch may issue a duplicate passbook on filing the application.
Auto-renewal is not available for the Term Deposits or Special Term Deposits opened under the SBI CapGains Plus unlike the Regular Term Deposits or Special Term Deposits products.
Upon maturity of the Term Deposit or Special Term, Deposit opened under SBI CapGains Plus scheme; the proceeds will be credited to the Savings Bank Account opened under SBI CapGains Plus scheme.