IndiaFilings / Learn / Banking / Sbi Capgains Plus
SBI Capgains Plus - Capital Gain Scheme - IndiaFilings

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

Eligible Applicants

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)

Minimum Amount

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)

Interest Rate

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.

Coverage Details

The SBI Capital Gains Deposit Scheme is operative at all branches of SBI except Rural branches.

Premature Payment

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.

Loan Facility

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.

Accounting Procedure

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. 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

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.

Renewal Details

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.
RENU SURESH
RENU SURESH Expert
Updated on: December 17th, 2019

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...