Karur Vysya Bank launches Capital Gains Account scheme to its customers

Chennai, Jan 9 (PTI) Private sector Karur Vysya Bank on Friday launched the Capital Gains Account scheme following the recent approval from the Ministry of Finance, a top official said on Friday.
    The Capital Gains Account is a specialised facility designed for individuals who have sold assets such as property, land or securities and need a secure way to 'park' their proceeds.
    By depositing such funds into this account, taxpayers remain eligible for tax exemptions under the Income Tax Act, 1961, the Karur based bank said in a press release on Friday.

    Commenting on the launch of the scheme, the bank's Managing Director and CEO B Ramesh Babu said, "The launch of our Capital Gains Account scheme represents our commitment to providing comprehensive tax-planning solutions. This service bridges an important step in the investment lifecycle allowing customers to maintain tax compliance while taking time to make informed decisions."

    The Indian tax allows exemptions on capital gains, if the proceeds from previously sold assets such as property or land, are reinvested within a time frame. However, the search for a new property can often exceed tax filing deadlines.

    The 'KVB Capital Gains Account' acts as a legal safeguard, earning interest for the customer while ensuring they comply with tax regulations.

    The service would be available across the branch's network with immediate effect except rural markets.

    The scheme enables fund transfers through UPI, NEFT in line with the Bank's existing digital banking infrastructure and account opening and operations are carried out as per applicable regulatory requirements, the release added.

(This story has not been edited by THE WEEK and is auto-generated from PTI)