SBI CapGains Plus: Park Unutilised Capital Gains for Your Next Real Estate Investment – Check Eligibility, Interest Rates, Account Types and Tax Benefits

Selling a property can generate a significant amount of money, but the resulting capital gains may also have tax implications. Taxpayers who plan to reinvest eligible gains in a qualifying asset may be able to claim an exemption, subject to applicable conditions and timelines. However, if the amount has not been utilised within the required period, it can be parked under the Capital Gains Accounts Scheme. SBI CapGains Plus offers a dedicated savings or term deposit account for holding such unutilised capital gains until they are used for the specified purpose. 

What Is SBI CapGains Plus? 

SBI CapGains Plus is a special deposit facility under the Capital Gains Accounts Scheme, 1988. It allows eligible taxpayers to park unutilised capital gains when they plan to make a qualifying investment but have not yet utilised the amount. SBI offers two account options: 

• Account A: Savings Bank Account
• Account B: Term Deposit Account in TDR/STDR form

Unlike a regular savings account or FD, the money deposited under SBI CapGains Plus must be used according to the rules of the Capital Gains Accounts Scheme. 

Key Features of SBI CapGains Plus 

• Two account options: Account A is a Savings Bank Account, while Account B is a Term Deposit in TDR/STDR form.
• Minimum deposit: ₹1,000 for the term deposit.
• No maximum limit: SBI does not specify an upper ceiling on the deposit amount.
• Interest: Deposits earn applicable SBI savings or fixed deposit interest rates.
• Tenure: The deposit can be kept for up to 24 or 36 months, depending on the applicable tax provision.
• Premature closure: TDR/STDR can be closed before maturity, with the proceeds credited to Account A.
• Account closure: To close all CapGains Plus accounts, the depositor must provide a specific authority letter or certificate from the Income Tax Officer of the respective jurisdiction. The closure is subject to the terms mentioned in the authorisation. 
• No auto-renewal: Term deposits are not automatically renewed at maturity.
• Maturity: On maturity, the term deposit proceeds are credited to the CapGains Savings Bank Account. 
• Eligibility: Resident individuals, HUFs, sole proprietorship firms, partnership firms, companies, associations of persons, NRIs, RNORs and artificial juridical persons having capital gains taxable in India can open the account.
• No loan facility: Loans cannot be taken against the deposit.
• Nomination: Up to three nominees can be registered.
• Branch transfer: The account can be transferred from one SBI branch to another.
• Availability: The scheme is available at SBI branches except rural branches.

Period of Deposit 

The deposit period under SBI CapGains Plus can be up to 24 or 36 months from the date of transfer of the original asset, depending on the applicable section declared in Form A.

• Up to 24 months: For capital gains under Sections 54, 54B and 54F.
• Up to 36 months: For capital gains under Sections 54, 54D, 54F, 54G and 54GB.

The applicable period depends on the section under which the taxpayer is claiming the capital-gains exemption.

How SBI CapGains Plus Works for Property Sellers

SBI CapGains Plus can be useful when a taxpayer sells a property but has not yet completed the next eligible investment. For example, suppose an investor sells a plot for ₹80 lakh and has an illustrative capital gain of ₹20 lakh. If the investor plans to purchase an eligible residential property but has not completed the purchase, the unutilised eligible amount can be deposited under the Capital Gains Accounts Scheme, subject to applicable conditions.The amount can then be used for the specified investment within the prescribed period.

Illustrative Example 

Note: The figures are illustrative. Actual capital gains and the amount eligible for exemption depend on the taxpayer’s circumstances and applicable tax provisions. 

How to Open SBI CapGains Plus? 

A taxpayer can apply for SBI CapGains Plus by submitting the prescribed application form. If the applicant is not an existing SBI customer, SBI states that the applicant must first open an SBI account and then submit the CapGains Plus application. The scheme is available at SBI branches except rural branches.

Also Read: NSC vs SBI 5-Year FD: ₹10 Lakh Investment Could Grow to ₹14.49 Lakh on Maturity – Check Which Offers Higher Returns

What Happens If You Do Not Open a CapGains Account? 

If the capital gain has not been utilised for the specified investment by the applicable return-filing deadline, the taxpayer may need to deposit the unutilised amount under the Capital Gains Accounts Scheme to claim the relevant exemption. Simply keeping the amount in a regular savings account does not qualify as a CGAS deposit. 

Important Points to Remember 

• SBI CapGains Plus is meant for eligible unutilised capital gains and is not a regular savings or fixed deposit.
• Depositing money under the scheme does not automatically guarantee a tax exemption; the relevant conditions must be met.
• Investors should check the applicable tax provision, deposit deadline and investment timeline before using the scheme.
• Account closure requires an authority letter or certificate from the jurisdictional Income Tax Officer.

Conclusion

SBI CapGains Plus allows eligible taxpayers to park unutilised capital gains while they arrange the next qualifying investment. With savings and term-deposit options, taxpayers can choose an account based on their fund requirements and investment timeline. However, the tax exemption depends on meeting the applicable conditions and deadlines, so the relevant tax rules should be checked before investing.