Capital Gain Account Scheme - IDBI Bank Capital Gain Account

IDBI Bank has been authorized to accept deposits under the Capital Gains Accounts Scheme (CGAS), 1988 (Gazette notification dated November 29, 2012 from CBDT)

The scheme facilitate investment in order to save Capital Gains tax for the Capital Gains made by selling a capital investment like residential house, flat, shares, family businesses, farm houses, agriculture land etc. under Central Governments Capital Gains scheme, 1988.

IDBI Bank’s Capital Gain Account Scheme can be availed by

• Resident Individuals
• Body of individuals
• Non-individuals like Hindu Undivided family (HUF)
• Sole proprietorship firms
• Partnership firms companies
• Association of persons etc.

• Nature of facility- Acceptance of deposits in the form of Savings Deposit or Term Deposit for availing benefit under CGAS, 1988 by the depositor



• Target Segment- All entities of investors looking at investment to save Capital Gains Tax



• Types of deposit- There will be two types of deposit accounts
  
  • Deposit Account-A: Saving Account.
  • Deposit Account-B: Term Deposit Account


• Minimum Amount- Minimum amount should be Rs. 10,000/-



• Maximum Amount- Rs. 100 Crore



• Minimum /Maximum period-
  • 15 days minimum and maximum upto 20 years
  • 45 days minimum and maximum 20 years for senior citizen


• Rate of interest-
  • Deposit A: Savings Bank rate as per RBI guidelines
  • Deposit B: As decided by ALCO from time to time
  Retail, Preferential and Bulk category- Existing Term Deposit Card rate for retail, Premium and Bulk deposit as applicable
  Senior Citizen - Senior Citizens get an extra benefit on the interest rate (0.5% extra) for deposit from 1 year and above.



• TDS- As per extant IT guidelines



• Interest Calculation- As per extant guidelines for SB and Term Deposit



• Premature withdrawal- As per CGAS, 1988 guidelines Withdrawal of more than Rs. 25,000/, will be allowed through crossed Demand Draft/ Pay Order/ NEFT/ RTGS only



• Premature withdrawal and Penalty- As per guidelines issued from time to time. Presently under RTD no premature penalty is prescribed, hence no premature penalty is proposed if TD booked under the scheme.  CGAS 1988 provides for 1% penalty for premature withdrawal



• Utilization of the amount of withdrawal- As per the guidelines of the CGAS, 1988



• Loan / Overdraft against Fixed Deposit- Not Applicable



• Overdue deposit- Interest on overdue deposit is paid as per prevalent policy of the bank from time to time



• Sweep-in options (i.e. Fund flowing from FFD to operative a/c- Not Applicable



• Nature of FD receipt- Confirmation of Deposit (COD) as per present process and guidelines



• Change or alienation- Amount standing to the credit of the depositor in any account under the Scheme shall not be offered as security for any loan or guarantee and shall not be charged or alienated in any manner, whatsoever



• Transfer and conversion of Account- Allowed as per the Bank as well as CGAS 1988 guideline. The process and guidelines of bank and CGAS 1988 Scheme to be followed



• Issue of Duplicate Pass Book or Receipt- In the event of loss or destruction of pass book or receipt, the branch may issue, on application made to it, a duplicate thereof



• Nomination by an Individual- As per the guidelines of the CGAS, 1988



• Other features- The operations of the accounts shall be guided by the provision of the CGAS, 1988