The Finance Ministry has taken a significant step to improve taxpayer convenience by expanding the Capital Gains Account Scheme to nineteen additional private sector and regional banks. This move allows more people across cities and semi urban regions to access the scheme easily and make use of tax exemptions linked to reinvestment of capital gains.
The Capital Gains Account Scheme is an important facility for individuals who have earned capital gains but are not yet ready to reinvest those gains into a new property or another eligible asset. By depositing the amount into a designated account taxpayers can protect their eligibility for exemption under various sections of the Income Tax Act. This is especially useful for those who need more time to complete the purchase or construction of a property.
Until now only select public sector banks were authorised to operate these accounts. With the new notification the Finance Ministry has permitted all non rural branches of nineteen private banks to accept deposits under the scheme. Non rural branches are those located in areas with a population of at least ten thousand according to the two thousand eleven census. This expansion greatly broadens the availability of the scheme and helps bridge accessibility gaps for many taxpayers.
The list of newly authorised banks includes HDFC Bank ICICI Bank Axis Bank City Union Bank DCB Bank Federal Bank IDFC First Bank IndusInd Bank Jammu and Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank RBL Bank South Indian Bank Yes Bank Dhanlaxmi Bank Bandhan Bank CSB Bank and Tamilnad Mercantile Bank. These banks are now eligible to open and maintain accounts for taxpayers under the scheme across their non rural branches.
The decision is expected to offer multiple benefits. First it increases convenience since individuals can now choose from a wider range of banks that may already handle their regular accounts. Second it helps improve compliance by making the scheme more accessible. Third it strengthens the overall ease of doing financial planning related to capital gains and property investments.
For taxpayers planning to claim exemptions this expansion provides greater flexibility and easier access to the required accounts. It is advisable to check with the nearest branch of the newly authorised banks to understand the specific procedures and documentation needed.
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