HDFC Bank to offer deposits under Capital Gains Accounts Scheme
HDFC Bank has received government authorisation to offer deposits under the Capital Gains Accounts Scheme (CGAS), 1988. The facility will allow taxpayers to park unused capital gains in savings accounts or fixed deposits for up to three years while retaining eligibility for applicable tax exemptions…
New Delhi: HDFC Bank on Wednesday said the bank has received authorisation from the government to offer deposits under the Capital Gains Accounts Scheme (CGAS), 1988.CGAS provides a facility for taxpayers to hold their unused capital gains for a maximum of three years in a bank account. With CGAS, taxpayers who are unable to finalise their re-investment before the income tax filing deadline can open savings accounts and fixed deposits with the bank across all urban and semi-urban branches (excluding rural branches), HDFC Bank said in a statement.
According to the applicable section of the Income-Tax Act, they will not only be able to avail tax exemption but also earn interest on their deposits for a maximum period of three years, it said.
Source: ET Banking & Finance
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