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.
IDBI Bank Capital Gain Account Features
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
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
How to Apply
Applying for a Capital Gain Account is absolutely simple. Just call Phone Banking numbers or visit your Nearest Branch. Our representative will contact you at the earliest.
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