The Government of India has given major relief to taxpayers. The Ministry of Finance has announced that the facility to deposit money under the Capital Gains Account Scheme (CGAS) will no longer be limited to public sector banks.
In a recent notification, the government has included 19 private and small finance banks in the list.
This change will provide taxpayers with more banking options to safeguard their capital gains and claim tax exemptions. Earlier, this facility was available only through select public sector banks.
List of 19 Banks Offering the Capital Gains Account Scheme
The government has now allowed investors to use the Capital Gains Account Scheme in the following private and small finance banks:
HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, RBL Bank, Yes Bank, South Indian Bank, Bandhan Bank, DCB Bank, City Union Bank, Karnataka Bank, Karur Vysya Bank, Jammu & Kashmir Bank, Dhanlaxmi Bank, CSB Bank, and Tamil Nadu Mercantile Bank.
This move will make it easier for taxpayers to securely park their capital gains and plan further investments.
What Is Capital Gains Tax?
Capital gains tax is the tax charged when a person earns profit by selling assets like land, houses, jewelry, or investments.
Short-term capital gains: When the asset is held for a short duration.
Long-term capital gains: When the asset is held for a longer period.
People often use the Capital Gains Account Scheme to save tax on these gains.
Benefits of the Capital Gains Account Scheme
The Capital Gains Account Scheme helps taxpayers save a significant amount of money in taxes. It removes the pressure of immediately reinvesting after selling a property.
If someone cannot invest in a new property before the income tax return deadline, they can still claim tax exemption by depositing the capital gains amount into a CGAS account. This gives more flexibility and time to plan investments.