5 things to know about capital gains account Know how it works
1.The I-T Act lets you save long-term capital gains on property if you invest the entire gain in a residential property or capital gains bonds.2.These investments have to be made either within a year before the sale of the property, or within two years of the transaction.
3.When the reinvestment time limit is longer than the return filing due date, one can deposit the under-utilised capital gains in the capital gains account.
4.Capital gains accounts can be opened in authorised banks and are of two types: savings and term deposits.
5.The withdrawal needs to be utilised within 60 days. Otherwise, the unutilised amount will be subject to capital gains tax in the fiscal year in which the deadline ends.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
