Karur Vysya Bank (KVB) has introduced its Capital Gains Account Scheme (CGAS), following approval from the Ministry of Finance, Government of India.
The service is now available across the bank’s branches, excluding rural markets.
The new scheme is aimed at helping customers manage proceeds from the sale of assets such as property, land, or securities in a secure and tax-efficient way.
What Is a Capital Gains Account?
A Capital Gains Account is designed for individuals and Hindu Undivided Families (HUFs) who need to “park” the money from asset sales temporarily.
By depositing the proceeds in this account, taxpayers can stay eligible for tax exemptions under the Income Tax Act, 1961, while they plan their next long-term investment.
Often, finding a new property or investment can take longer than the tax filing deadlines.
The KVB Capital Gains Account helps customers comply with tax rules, earn interest, and avoid rushed investment decisions.
The scheme is fully integrated with KVB’s digital banking services, allowing fund transfers via UPI, NEFT, and RTGS.
Account opening and operations follow all regulatory requirements.
Two Account Options to Choose From
Customers can select between two types of accounts depending on their investment needs:
Type A (Savings Account): Suitable for periodic withdrawals, ideal if reinvestments or property construction happen in phases.
Type B (Term Deposit): Designed to park capital gains for a fixed term, with options for cumulative or non-cumulative interest payouts.
Mr. B. Ramesh Babu, Managing Director & CEO of KVB, said,
“The launch of our Capital Gains Account scheme reflects our commitment to providing comprehensive tax-planning solutions.
This service bridges an important gap, allowing customers to maintain tax compliance while making informed investment decisions.
As asset sales remain strong, we believe this offering will be highly valuable to our customers.”
