ICICI Bank has announced the launch of the Capital Gains Account Scheme (CGAS), a facility that allows taxpayers to park unutilised long-term capital gains or sale proceeds and claim tax exemptions while
earning interest on the deposited amount.
The launch comes after the government approved ICICI Bank as an authorised institution to accept deposits under the Capital Gains Account Scheme.
Effective January 1, 2026, the scheme is available to resident individuals and Hindu Undivided Families (HUFs). The bank said the facility will be extended to non-individual entities and non-resident Indians (NRIs) at a later stage.
The CGAS is particularly useful for taxpayers who are unable to reinvest their long-term capital gains in eligible assets before the income tax return (ITR) filing deadline, but still wish to claim exemptions under the Income Tax Act. By depositing the gains in a designated CGAS account, taxpayers can retain their exemption eligibility for up to three years, subject to reinvestment conditions.
Customers can open a Capital Gains Account by visiting an ICICI Bank branch, except rural branches, in line with CGAS rules.
An ICICI Bank spokesperson said, “We thank the Government of India for recognising ICICI Bank as an authorised institution for CGAS deposits. With this scheme, customers can park un-invested long term capital gains, earn interest, and claim tax exemptions, while planning reinvestment up to three years. This offering reinforces our commitment to deliver financial solutions that meet evolving customer needs.”
Under the scheme, customers can choose between two types of accounts. Type A accounts, similar to savings accounts, allow flexible withdrawals linked to approved reinvestment purposes. Type B accounts function like term deposits and can be opened 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 relevant provisions of the Income Tax Act. The deposited funds can be temporarily parked for up to three years, during which taxpayers can plan reinvestment without losing the exemption benefit. Interest earned on these accounts is comparable to regular savings accounts or fixed deposits, depending on the account type.
The proceeds can later be reinvested in eligible assets such as residential property, agricultural land, or new capital assets of industrial undertakings in non-urban areas or special economic zones, depending on the applicable CGAS provisions. Withdrawals are permitted only against proof of utilisation for the specified purpose.
For taxpayers dealing with delayed reinvestment of capital gains, the CGAS provides a structured way to preserve tax benefits while keeping funds interest-bearing until final deployment.
Section 54 Exemption On Capital Gains Tax
Under the Income Tax Act, taxpayers can save long-term capital gains tax by reinvesting the sale proceeds under specific sections such as 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), and Section 54D (compulsory acquisition of industrial land or buildings). If the reinvestment cannot be completed before the income tax return filing deadline, the unutilised amount can be deposited in a Capital Gains Account Scheme (CGAS). This deposit is treated as a valid reinvestment for tax purposes, allowing the taxpayer to claim the exemption on time, provided the funds are eventually used within the specified period—usually two to three years, depending on the section.
