Ch.8 · Capital Gains Tax on Mutual Funds · hard
What is the purpose of the 'Capital Gain Account Scheme' (CGAS) for mutual fund investors?
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EXPLANATION
The Capital Gains Account Scheme (CGAS) allows investors to claim exemption under Sections 54/54F (for reinvestment of capital gains into residential property) even if the reinvestment has not happened by the ITR filing due date. The gain amount is deposited in a designated bank account under CGAS, preserving the exemption claim while the investor searches for suitable reinvestment. This is relevant for investors who sell mutual funds with LTCG and plan to reinvest in property.
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