Capital Gain Account Scheme

Capital Gain Account Scheme (CGAS) is a government backed scheme that allows individuals and Hindu Undivided Families (HUFs) to park capital gains from the sale of assets (such as property) to claim tax exemption under Sections 54, 54B, 54D, 54F, 54G, and 54GB of the Income Tax Act.

• Any resident individual or HUF who has earned capital gains and wishes to claim exemption under the Income Tax Act.

• Type A - Savings account: Allows flexible withdrawals for re-investment.
• Type B - Term deposit: Fixed tenure investment for capital gains.

The account must be opened before the due date of filing your Income Tax Return for the relevant assessment year.

• Filled Form A (application form)
• KYC Documents (Identity Proof, Address Proof)
• Proof of capital gain (For e.g. property sale deed)
• Passport-size photograph

The tenure should align with the prescribed period for utilizing capital gains under the Income Tax Act (generally up to 3 years for property related exemptions).

Yes, withdrawals are allowed for re-investment in specified assets.

Yes, interest earned on both savings and term deposit accounts under CGAS is taxable, and TDS will be deducted as per prevailing norms.

On maturity, the funds must be credited back to the Capital Gain Savings Account. Direct withdrawal is not permitted without following CGAS rules.

You can open the account at any authorized  bank branch offering CGAS services.