How to open capital gain account?

Opening a Capital Gain Account in India is essential for individuals who have earned capital gains from the sale of assets such as property, shares, or mutual funds. A capital gains account may only be opened in person at a bank branch that has been authorised. So to answer your query how to open capital gain account online, they cannot be opened online. 

How to Open a Capital Gains Account?

Even if you want to reinvest the proceeds to avoid tax liabilities under sections like 54, 54F, or 54EC, you must have a capital gain account. 

Here’s a step-by-step capital gain account opening process:

Choose the Type of Account:

• Capital Gains Account Type A (CGAS - A): For reinvesting in residential property under Section 54/54F.

• Capital Gains Account Type B (CGAS - B): For reinvesting in bonds under Section 54EC.

Capital Gain Accounts can be opened with designated banks authorized by the Income Tax Department, such as SBI, HDFC Bank, ICICI Bank, etc. Choose a bank that suits your convenience and preferences.

Go to the nearest branch of the chosen bank that offers Capital Gain Accounts.Request the Capital Gain Account opening form from the bank. Provide personal details, including your name, address, PAN number, and details of the capital gains along with the KYC documents

This is all about how to open capital gain account.

Read more

How to open capital gain account in Axis Bank? Let's discuss step by step process.

The Capital Gains Account is opened to deposit the gains from the sale of a property to avail of tax benefits under Sections 54, 54B, 54D, 54F, and 54G of the Income Tax Act.

Here's how to open Capital Gain Account in bank:

• You are required to visit the Axis Bank branch in which you have your account.

• Request them to give you an application form for opening a Capital Gains Account. You are required to provide your personal details and the reason for opening it.

• You are required to provide the following documents:

1. Passport-sized photographs.

2. Identity proof (e.g., Aadhaar card, PAN card, passport).

3. Address proof (e.g., utility bill, Aadhaar card, passport).

4. Proof of sale of the property.

5. Any other documents as required by the bank.

• Next in the process of

  how to open CGAS account

  , deposit the capital gains amount into the Capital Gains Account.

• Choose between the CGAS 1988 or CGAS 2016 account, depending on your tax-saving requirements.

• The bank will process your application and verify your documents.

•  Once approved, your Capital Gains Account will be activated.

Remember, you can manage your account as required. You can also withdraw funds for eligible purposes. This is all about how to open a capital gains account in Axis Bank.

Read more

Hi buddy,

Capital Gains Account Scheme (CGAS) allows you to safeguard your long-term capital gains (LTCG) until you’re able to invest them as mentioned in Sections 54F and 54. Under Section 54F, one can invest the LTCG from the sale of bonds and shares, in a residential property. Under Section 54, one can invest the LTCG made from the sale of immovable property, in a residential property. Let me tell you how to open capital gain account.

How to Open Capital Gain Account in HDFC bank, SBI bank, and ICICI bank.

You can open a CGAS account only if you’re not able to invest it in a property before the due date to file ITR (31

st

July after the given assessment year). This scheme began in 1988, and one can open an account in any of the 28 banks notified by the govt. This includes the SBI and other State Banks, Corporation Bank, Bank of Baroda, IDBI Bank, Central Bank of India, and Syndicate Bank. However, the CGAS facility isn’t available in any rural branch of these banks. Moreover, private banks like ICICI and HDFC aren’t authorised to open Capital Gains Account. This must have answered the query on how to open capital gain account in ICICI bank as well.

You can open a capital gains account by filling in and submitting Form A along with address proof, photo, and PAN card copy. You can deposit the amount in the account through demand draft, cash, or cheque. The amount can also be deposited in installments. If you’ve deposited the amount through demand draft or cheque, the date of deposit shall be counted from the date on which the DD or cheque is encashed. Moreover, if you want to invest both in a property or in government bonds under different sections of the IT Act, you are required to open separate CGAS accounts.

Read more:

This is how to open capital gain account in SBI bank.