If you need to pay capital gains you need to open a Capital Gain Tax account. To open a Capital Gains Account you need to visit a bank specified by the Govt. There are 28 banks where you can open your capital gain account except the Rural branches. You won't be able to open a capital gain account in HDFC or ICICI. To understand the interest on capital gain account, you need to understand what type of capital gain account scheme you can opt for.
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Capital Gains Account – Type A – Savings Account:
Type A is just like a normal savings account and the interest that can be paid is the same as the interest paid on a normal savings account. For type A account the deposit office will provide a passbook where you will have all the details about amounts of deposits, withdrawals, together with the interest due, shall be entered over the signature of the authorised officer of the Bank.
Capital Gains Account -Type B – Term Deposit Account:
A term deposit account is like a fixed deposit where you can deposit the amount for a fixed amount of time. The interest rate is equal to the interest paid on deposits by the bank. Withdrawal can attract a penalty due just like other Fixed deposit accounts.
CGAS account interest rate:
RBI specifies the interest on the capital gain account.
Cumulative deposits in Account B are the option where the interest amount is invested again and the total amount is paid during the time of withdrawal. The non-cumulative deposits in Account B refer to the interest due payable in quarterly intervals.
The interest earned on the Capital tax account is chargeable as per the guidelines of Income Tax Slab Rates.
This was all about interest on capital gain account in a nutshell. I hope you find this informative.
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Capital gain account scheme interest rate
Darshan
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2022-05-23T23:58:17+00:00 2022-05-23T23:58:19+00:00Comment
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