Long term Capital gains arising on transfer of capital assets, is not chargeable to tax if the amount of capital gain or net consideration has been utilised for specified purposes within the stipulated period as laid down under the Income tax Act.
The amount of capital gain, which is not so utilized for the specified purposes, could be deposited in special Savings Bank or Term Deposit account opened with IDBI Bank Ltd as per the provisions of CGAS, 1988.
The minimum amount of deposit under Term Deposit Account would be Rs.10,000/- and thereafter in multiples of Rs.10,000/- with a cap of Rs 100 crore. Senior Citizens depositing the amount with IDBI Bank Ltd. are eligible for additional interest, it said in the press release.
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