· Customers can deposit long term capital gains or
sale proceeds to claim tax exemptions and earn interest
Mumbai: ICICI
Bank today announced the launch of the Capital Gains Account Scheme (CGAS),
enabling customers to deposit un-invested long term capital gains or sale
proceeds from the sale of specified capital assets*. This facility allows them
to avail tax exemptions* for up to three years while earning interest on
deposited funds.
The launch
follows the Government’s approval of ICICI Bank as an authorised institution to
handle CGAS deposits.
Starting
January 1, 2026, this scheme is available for Resident individuals and Hindu
Undivided Families (HUFs). It will be available for non-individuals and NRIs
shortly. It benefits taxpayers who are unable to reinvest long term capital
gains before the Income Tax Return (ITR) filing deadline. Customers can open a
Capital Gains Account by visiting their nearest ICICI Bank branch (except rural
locations, as per CGAS rules).
An ICICI Bank
spokesperson
said, “We thank the Government of India for recognising ICICI Bank as an
authorised institution for CGAS deposits. With this scheme, customers can park
un-invested long term capital gains, earn interest, and claim tax exemptions,
while planning reinvestment up to three years. This offering reinforces our
commitment to deliver financial solutions that meet evolving customer needs.”
Key features
& benefits of CGAS:
· Type A (Savings
Account):
Flexible withdrawals linked to approved reinvestment purposes
· Type B (Term
Deposit Account): Cumulative or non-cumulative formats for fixed-tenure
deposits
· Tax exemption: Deposit un-invested capital gains or sale
proceeds before the ITR due date to claim exemption on long-term capital gains
under relevant Income Tax sections
· Temporary parking of funds: Up to three
years to plan reinvestment without losing exemption eligibility
· Interest earned: Similar to regular savings account or fixed
deposits.
· Flexible reinvestment: Proceeds can be invested in property,
agricultural land, or new capital assets of industrial undertaking in non-urban
areas/ special economic zones depending on the CGAS chosen; withdrawal of
proceeds requires proof of usage of funds