What is Capital Gains Deposit scheme Account??

As u knw, the IT Act gives the transferer of a house property, a max time of 2 yrs for acquisition & 3yrs for Construction of a New H.P...

to see to it that during those years, the amount of C.G isnt invested otherwise, its mandatory to put the Capital Gains amount into a C.G.D.S with a scheduled bank within 31st March of the year of transfer. If its not done, then the same C.G will be taxable durin that A.Y....

Thanks 4 replying Jeet. Does the Scheduled Bank provide (credit) any kind of interest for the same amount to the account. If yes then at what rate???

I dont think so.

 jeet is right

banks give normal saving bank account interest on the CGDS.

respected jeet ,

you mentioned thgat it has to be deposited before 31st march  in year of transfer ...my question is whether  the date is 31st march or  31 july{ie last date of filing return }???
 

Before 31-03

Capital gain can be deposited in CGDS before the due date of filing of return i.e. July 31st/Sep 30th ( as the case may be) of the Assessment year.

as per the scheme if you have any capital gain and you have not invetsed the same as per other exempting sections than you can deposit the same in special bank account within 6months of the gain earned so as to claim exemtion..

the same is to be invested as per sections in the time provided to retain exemtions 

bank gives the normal rate of interest as if it gives in fixed deposit for that period