ICICI Bank has officially launched the Capital Gains Account Scheme (CGAS), effective from January 1, 2026, offering a significant opportunity for taxpayers to save on income tax by depositing their unutilized capital gains. This scheme, notified under the Income Tax Act, 1961, is designed to assist individuals and Hindu Undivided Families (HUFs) who have earned long-term capital gains but are unable to reinvest them immediately in eligible assets such as residential property or land.
Key Highlights of ICICI Bank’s Capital Gains Account Scheme
- Tax Exemption Benefits: Deposits made under CGAS are eligible for exemptions under the Income Tax Act, allowing taxpayers to defer tax liability until reinvestment.
- Flexibility of Accounts: Customers can choose between a savings account or a fixed deposit account, depending on their financial goals.
- Interest Earnings: Deposited capital gains not only remain tax-exempt but also earn interest, ensuring that funds grow while awaiting reinvestment.
- Extended Timeframe: Taxpayers are provided a period of up to 2–3 years to reinvest their capital gains in eligible assets, offering flexibility and compliance with tax laws.
- Accessibility: Accounts can be opened at ICICI Bank branches (excluding rural branches), making the scheme widely accessible to urban and semi-urban customers.
Why This Scheme Matters
Many taxpayers face challenges in reinvesting their capital gains before the deadline for filing income tax returns. The CGAS acts as a bridge, allowing them to park funds safely while retaining eligibility for exemptions. This initiative by ICICI Bank is expected to benefit property sellers, investors, and individuals dealing with large asset transactions who want to optimize their tax planning strategies.
How to Avail the Scheme
To open a Capital Gains Account, customers must visit an ICICI Bank branch and comply with CGAS rules. The deposited funds can later be withdrawn for reinvestment in eligible assets, ensuring compliance with tax exemption provisions. This makes the scheme particularly useful for those planning property purchases or reinvestments but requiring more time to finalize transactions.
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ICICI Bank’s launch of the Capital Gains Account Scheme is a timely move that empowers taxpayers to manage their capital gains efficiently while staying compliant with tax laws. Combined with professional guidance from trusted research analysts like Eqwires, investors can now navigate both taxation and investment strategies with confidence.
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