I have sold my residential property in Dec'2012. Where should i deposit my funds Capital gain account scheme) to avail exemption u/s 54, since i have two years to purchase new residential property.
Is normal Fixed deposit in Bank will suffies the requirement?? Any specific procedure to follow.
For availing exemption u/s 54 amount should be deposited in an account with any specified bank or institution and utilised in accordance with the Capital Gain Scheme,1988 frame by central govt in this regards.
Capital Gain Account Scheme,1988
3. Deposits how to be made.- A deposit or deposits may be made under the provisions of section 54 or section 54B or section 54D or section 54F or section 54G of the Act by any depositor intending to avail of the benefit under the said section or sections of the Act, as the case may be, in accordance with the provisions of this Scheme.
4. Types of deposits.- (1) There shall be two types of deposit accounts, namely :—
(i) “Deposit account-A”; and
(ii) “Deposit account-B”.
(2) The deposit made under account-A shall be in the form of ‘savings deposit’ and subject to the other provisions of this Scheme, withdrawals under this account can be made from time to time by the depositor.
(3) The deposit made under account-B shall be in the form of ‘term deposit’ with an option to the depositor to keep the deposit as cumulative or non-cumulative deposit. Except as provided under paragraph 7 and paragraph 9, withdrawals under this account can be made only after the expiry of the period for which the deposit under this account has been made and accepted.
(4) Such deposits may be made in one lump sum or in instalments at any time on or before the due date of furnishing the return of income under sub-section (1) of section 139 of the Act as is applicable in the case of the depositor.
You can also visit following link for all the details regarding the Capital gain scheme,1988
CAclubindia
