ICICI Bank has introduced the Capital Gains Account Scheme (CGAS), a facility that allows taxpayers to temporarily park their unutilised long-term capital gains or sale proceeds.
This helps investors claim tax exemptions while earning interest on the deposited amount.
The launch follows the government approving ICICI Bank as an authorised institution to accept CGAS deposits.
The scheme is effective from January 1, 2026, for resident individuals and Hindu Undivided Families (HUFs).
It will later be extended to non-individual entities and NRIs.
How the CGAS Works
The CGAS is especially useful for taxpayers who are unable to reinvest long-term capital gains in eligible assets before the income tax return (ITR) filing deadline.
By depositing the gains in a CGAS account, they can retain tax exemption eligibility for up to three years, as long as the funds are reinvested in approved assets within the allowed period.
Customers can open a CGAS account by visiting an ICICI Bank branch (except rural branches).
ICICI Bank offers two types of accounts under CGAS:
Type A Account: Works like a savings account, allows flexible withdrawals for approved reinvestment purposes.
Type B Account: Functions like a term deposit, available in cumulative or non-cumulative formats for a fixed tenure.
Deposits made before the ITR due date can be used to claim exemption on long-term capital gains under the Income Tax Act.
The funds can remain parked for up to three years while taxpayers plan reinvestments.
Interest earned depends on the account type and is comparable to savings or fixed deposit rates.
Eligible Reinvestments and Tax Benefits
The deposited funds can later be reinvested in assets such as:
Residential property
Agricultural land
New capital assets in industrial undertakings in non-urban areas or special economic zones
Withdrawals are allowed only against proof of utilisation for the specified purpose.
This makes CGAS a structured way for taxpayers to preserve tax benefits while keeping the funds interest-bearing until final deployment.
Section 54 Exemption on Capital Gains
Under the Income Tax Act, taxpayers can save long-term capital gains tax by reinvesting proceeds under specific sections:
Section 54: Sale of a residential house
Section 54F: Sale of assets other than a house
Section 54B: Sale of agricultural land
Section 54EC: Investment in notified bonds
Section 54D: Compulsory acquisition of industrial land or buildings
If reinvestment cannot be completed before the ITR deadline, the unutilised amount can be deposited in CGAS.
This deposit is treated as valid reinvestment for tax purposes, allowing taxpayers to claim exemptions on time, provided the funds are eventually used within the specified period (usually 2–3 years).
The CGAS facility is ideal for anyone facing delays in reinvesting capital gains, offering a safe, interest-bearing, and tax-compliant solution.
