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Capital gain deposit account scheme
A person who is liable to pay tax on the capital gain due to sale of some capital asset can claim exemption if he invests in buying or constructing a new property or agricultural land within a specified time. However if he wishes to invest but has not been able to find a suitable deal he can deposit the amount in a special account known as Capital Gains deposit Accounts scheme of a bank before the due date of filing his return of income. He is required to attach a proof of deposit along with the return of income. Amount utilized by him for the purchase or construction of the new house along with the amount so deposited shall be deemed to the cost of the new house.
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