PNB Capital Gain Account Scheme

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Features of PNB Capital Gain Account Scheme

• Deposit Amount: The Capital Gain Term Deposit account under PNB can be opened with a minimum deposit of Rs. 1,000. Subsequent deposits can be made in multiples of Re. 1, with no upper limit on the maximum amount that can be deposited.

• Period of Deposit

1. Maximum Tenor

   • 24 Months: For capital gains under sections 54, 54B, and 54F of the Income Tax Act (as declared in Form A by the depositor).

   • 36 Months: For capital gains under sections 54, 54D, 54F, 54G, and 54GB of the Income Tax Act (as declared in Form A by the depositor).

   

2. Minimum Tenor

   • Maturity Option: 7 days

   • Income Option: 6 months

   After the specified tenor, the fixed deposit will be auto-closed.

   • Interest Rate: The interest rate applicable to the Capital Gain Term Deposit will be the card rate as per the bank's circulars from time to time. No additional interest will be provided to senior citizens or staff members under this scheme.

   • Premature Withdrawal of Deposit: If the deposit is withdrawn prematurely, a penal interest rate of 1% will be charged. The interest rate payable will be the lower of:

     • The contractual rate minus 1%, or

     • The rate under the scheme on the contractual date is applicable for the tenor for which the deposit has actually run minus 1%.

   • Fixed Deposit Under Income Option: Depositors can choose to receive interest on a quarterly basis or upon maturity. Interest payments will be credited to the Savings Bank Capital Gain account. If the depositor has a Savings Fund Capital Gain account, they may apply for withdrawal at any time after the initial subscription using Form C, along with the Passbook, subject to the scheme's provisions.

   • Loan Facility: No loan facility is available against this deposit.

   • Interest Certificate: An interest certificate can be issued to the depositor, reflecting the amount credited or accrued in the depositor’s account during the year.

   • Tax Deduction at Source: Branches are required to deduct income tax, if applicable, at the time of interest payment or credit, as per instructions issued by the Finance Division, HO from time to time.

   • Branch Availability: The account can be opened at all branches except rural branches. Single Capital Gains Term Deposits of over Rs. 25 crore are accepted only at identified branches.

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Eligibility of PNB Capital Gain Account Scheme

The PNB Capital Gain Account Scheme is available to depositors who qualify under specific sections of the Income Tax Act. This includes individuals eligible to make deposits under Sections 54, 54B, 54D, 54F, 54GB, and 54G. These sections pertain to various conditions and exemptions related to capital gains. By meeting the criteria outlined in these sections, eligible depositors can open an account under this scheme to manage and benefit from their capital gains effectively.

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