ICICI Bank has introduced the Capital Gains Account Scheme (CGAS), a facility that lets taxpayers park unutilised long-term capital gains while still claiming tax exemptions and earning interest on the deposited funds.
The launch comes after the government approved ICICI Bank as an authorised institution to accept deposits under this scheme.
The facility is available from January 1, 2026, for resident individuals and Hindu Undivided Families (HUFs).
Other entities, including non-resident Indians (NRIs), will be covered later.
How the Capital Gains Account Scheme Works
CGAS is especially useful for taxpayers who cannot reinvest their long-term capital gains in eligible assets before the income tax return (ITR) filing deadline.
By depositing these gains in a CGAS account, taxpayers can retain exemption eligibility for up to three years, giving them time to plan reinvestments without losing tax benefits.
ICICI Bank customers can open a CGAS account at any bank branch, except rural branches, following CGAS rules.
The bank offers two types of accounts:
Type A Account – Functions like a savings account, allows flexible withdrawals linked to 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 exemptions on long-term capital gains, and interest earned is similar to regular savings accounts or fixed deposits, depending on the account type.
Where the Funds Can Be Reinvested
The deposited capital gains can later be used to invest in eligible assets, such as:
Residential property
Agricultural land
New capital assets for industrial undertakings in non-urban areas or special economic zones
Withdrawals are allowed only with proof of utilisation for these specified purposes.
This scheme provides a structured way to preserve tax benefits for taxpayers dealing with delayed reinvestments, while keeping the funds interest-bearing until they are deployed.
Section 54 Exemptions on Capital Gains Tax
Under the Income Tax Act, taxpayers can save long-term capital gains tax by reinvesting sale proceeds under sections like:
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 filing deadline, depositing the unutilised amount in a CGAS account counts as a valid reinvestment.
The exemption remains applicable as long as the funds are eventually used within the specified period of 2–3 years.