UPSC Prelims Practice Questions — KVB unveils capital gains account for customers

Question 1

With reference to the Capital Gains Accounts Scheme (CGAS), 1988, which one of the following statements describes it most accurately?

Accepted Answer

It is a facility under which an assessee may temporarily deposit unutilised capital gains in a designated bank account to preserve eligibility for capital-gains tax exemption pending reinvestment

Answer

It is a tax-free bond scheme that wholly exempts long-term capital gains if held for at least five years

Answer

It is a deposit insurance scheme that fully guarantees capital invested in equity markets against any loss

Answer

It is a government scheme that permanently waives capital-gains tax for individual taxpayers below a fixed income threshold

Question 2

Which one of the following authorities issues the order/notification authorising banks to accept deposits and operate accounts under the Capital Gains Accounts Scheme, 1988?

Accepted Answer

Central Board of Direct Taxes (CBDT), Department of Revenue

Answer

Reserve Bank of India (RBI)

Answer

Securities and Exchange Board of India (SEBI)

Answer

Department of Financial Services, Ministry of Finance

Question 3

The Capital Gains Accounts Scheme, 1988 derives its statutory authority from provisions of which one of the following?

Accepted Answer

The Income-tax Act, 1961

Answer

The Banking Regulation Act, 1949

Answer

The Reserve Bank of India Act, 1934

Answer

The SARFAESI Act, 2002

Question 4

By the CBDT notification of November 2025 that expanded the Capital Gains Accounts Scheme, 1988 (under which Karur Vysya Bank was authorised), how many additional banks were authorised to accept CGAS deposits?

Accepted Answer

19

Answer

9

Answer

14

Answer

24

UPSC Prelims Practice Questions — KVB unveils capital gains account for customers

Q1. With reference to the Capital Gains Accounts Scheme (CGAS), 1988, which one of the following statements describes it most accurately?

Q2. Which one of the following authorities issues the order/notification authorising banks to accept deposits and operate accounts under the Capital Gains Accounts Scheme, 1988?

Q3. The Capital Gains Accounts Scheme, 1988 derives its statutory authority from provisions of which one of the following?

Q4. By the CBDT notification of November 2025 that expanded the Capital Gains Accounts Scheme, 1988 (under which Karur Vysya Bank was authorised), how many additional banks were authorised to accept CGAS deposits?