Capital Gains Account Scheme, 1988

All Non Rural Branches (i.e. All Semi Urban/Urban/Metro Branches are authorized to open Capital Gains Account Scheme

There are two types of Account:

Account ‘A’ (Savings Bank) Without Cheque Book

Account ‘B’ (Term Deposit cumulative/ non-cumulative)

(Savings Plus Scheme not permitted)

Form – A (in duplicate) + Proof of Address + Copy of PAN Card + Photograph + unstamped HUF Letter in case of account is for HUF (non-trading) Please refer Appendix-V (Manual of Instruction Volume-I)

Rate of Interest:

• Account ‘A’ – The prevailing ROI for SB Accounts
• Account ‘B’ – As per Bank’s prevailing TDR Rates.

Amount can be withdrawn from deposit “A” (Savings Bank Account) by furnishing an application in form ‘C’ along with PassBook.(No cheque book is issued in the a/c)

Premature withdrawal from Deposit ‘B’ (TDR) is permitted by converting account from ‘B’ to ‘A’ Form B will be used for conversion of Account ‘B’ to ‘A’.

For subsequent withdrawal form ‘D’ (in duplicate) by giving the details showing the manner/ purpose for which the previous withdrawal has been utilized Banks are not obliged to allow further withdrawal if above referred particulars are not furnished.

Any withdrawal over Rs.25,000/- should be affected by Bank, only by crossed DD.

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 relevant section.

Amount cannot be placed or offered as Security for any loan or guarantee and cannot be charged or alienated.

Account can be transferred to another Branch of the same Bank.

Interest is not exempted under the Income Tax Act, 1961. TDS will be deducted as TDR rules

This is permitted – Depositor will apply for this transfer in form ‘B’. If account ‘A’ is not opened a new ‘A’ will be opened on obtention of form ‘A’.

Form ‘E’ (Max. 3 Nominees)

1st nominee shall alone have the right to recover the amount, after death of 1st nominee, 2nd has the right and after death of 1st & 2nd, the 3rd will get right.

Form ‘F’ for variation/ cancellation. Nomination should be entered in Pass-Book/ Deposit Receipt.

No nomination will be made for other type of accounts (like HUF, minors etc).

In the event of loss or destruction of pass book or receipt, the branch may issue, on application made to it, a duplicate thereof (Adopt procedure applicable to normal account)

• Application in Form ‘G’ with the approval of Assessing Officer who has jurisdiction to the assessee depositor.
• If depositor dies, the nominee will make application in Form ‘H’ with the approval of Assessing Officer (having jurisdiction over deceased assessee depositor)
• If there is no nomination then legal heirs will apply in form ‘H’ with the approval of Assessing Officer (having jurisdiction over deceased assessee depositor).