Capital Gains Accounts Scheme
The Capital Gains Accounts Scheme (CGAS), 1988, was introduced by the Central Government to provide taxpayers with a structured mechanism to safeguard their tax exemptions on long-term capital gains.
Under the Income Tax Act, 1961, taxpayers are often required to reinvest profits from the sale of assets into specified avenues within a fixed timeline.
However, when a taxpayer is unable to reinvest these gains before the due date for filing their Income Tax Return, the CGAS serves as a vital "parking tool".
By depositing unutilized gains into this designated account, the funds are legally treated as reinvested, allowing the taxpayer to claim immediate tax exemptions while they finalize their investment plans for a new property or asset.
This scheme offers essential flexibility for individuals and Hindu Undivided Families (HUFs) who require more time to navigate the real estate market or complete phased construction.
Operating through two distinct account types — Type A for liquid, savings-oriented withdrawals and Type B for fixed, term-deposit investments—the CGAS ensures that funds remain secure and productive.
The Capital Gains Accounts Scheme (CGAS), 1988, is a powerful regulatory tool that allows individuals and HUFs selling capital assets (primarily property) to temporarily park their capital gains to avail tax exemptions under Sections 54, 54B, 54D, 54F, 54G, and 54GA of the Income Tax Act.
Eligible Depositors
Individuals, HUFs, Companies, Trusts & Firms
Eligible Branches
Metropolitan, Urban & Semi-Urban Branches
CGAS Benefits
Deposit & Reinvest Capital Gains
*KARUR VYSYA BANK RESERVES THE RIGHT TO CHANGE / ALTER/ WITHDRAW TERMS AND CONDITIONS OF THE SCHEME.
