How to save LTCG Tax on sale of property using SBI Capgains Plus (Capital Gains Scheme 1988)

Sold a plot of land or a flat or any such property recently? You could be liable to pay Long Term Capital Gains Tax. However, if you plan to re-invest it in a residential property or any other specified asset within the stipulated time frame, you can park the proceeds in SBI's CapGains Plus, under the Capital Gains Account Scheme, 1988 and be eligible to claim exemption of Long-Term Capital Gains Tax on sale of Capital Assets.

The Benefit for you:

Adequate time to acquire the new asset of your liking
Earn interest at Savings Bank or Fixed Deposit rates as you wait.

Eligibility:

• Resident Individuals, Body of individuals,
• Non-individuals like Hindu Undivided Family (HUF), Sole Proprietorship firms; Partnership firms, Companies, Association of persons etc.
• Non-resident Indians (NRIs)
• Resident but not Ordinary Resident (RNOR)
• Artificial Judicial persons who have capital gains, taxable in India

Also Read: 10 things you need to know about SBI Public Provident Fund (PPF) scheme

Type of Accounts

Savings Bank Account (Deposit Account-A) and Term Deposits (TDR / STDR) (Deposit Account-B)

Period of Deposit

Not exceeding 2 to 3 years from the date of transfer of the original asset as given below:–

Max 24 months - if capital gains is U/s 54, 54B, 54 F. (As declared in Form A by depositor)
Max 36 months - if capital gains is U/s 54, 54 D, 54 F, 54 G & 54GB (As declared in Form A by depositor)

Interest Rate

As applicable to normal Savings Bank account and/or Term Deposits for respective maturities of Retail & Bulk deposits. No additional interest rate benefit for Senior Citizens or Staff.

Loan facility

No loan facility against this deposit is available. This term deposit can neither be accepted as margin money for non-fund based nor as collateral to any type of fund-based facilities.