29 November 2012
Two types of Accounts in Bank for Capital Gains deposit Scheme.Generally available with all urban bank branches. Account ‘A’ (SB a/c) with interest rate as applicable to SB A/cs. Account ‘B’ (Term Deposit cumulative/ non-cumulative) with interest rate as per Fixed Deposit rates. Amount can be withdrawn from deposit “A” (Savings Bank Account) by furnishing an application in form ‘C’ alongwith Pass Book.Cheque facilty is NOT available for this. Premature withdrawal from Deposit ‘B’ is permitted by converting account from ‘B’ to ‘A’ and by levying 1% penal interest for premature payment as in case of TDRs. Form B will be used for conversion of Account ‘B’ to ‘A’. Amount drawn from Account ‘A’ has to be utilized within 60 days from the date of such withdrawal for the purpose mentioned in the relevant sections. Unutilized amount should be re-deposited in Account ‘A’ immediately. Non-compliance of this rule will render the depositor to lose exemptions under capital gains.CA Certificate is not required.But you will have to show in the ITR if before 3 years a/c is closed and used for other purpose.
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