Capital Gains Account Scheme
Features of Capital Gains Account Scheme
There are 2 categories of Capital Gains Account which are as follows:-
- Only Individuals and HUF are allowed to open capital gains account.
- The amount deposited in the Capital gains account cannot be offered as a Security for any Loan/ Guarantee.
- The Interest on such account is not tax-free and TDS is also liable to be deducted from such account as per the provisions of the income tax act.
- The taxpayer can also appoint nominees to this account by making an application in Form E. Such nomination can also be cancelled by making an application in Form F.
- To close the Capital Gains Account, an application in Form G is required to be made. In case of the death of the depositor, such application would be required to be made by the nominee/legal heirs in Form H.
- The approval of the income tax officer who has the jurisdiction of the depositor is also required at the time of making an application for the closure of the account.