- Government-authorised Capital Gains Accounts Scheme (CGAS), 1988 now available through HDFC Bank, offering taxpayers a dedicated avenue to park unutilised capital gains.
- Taxpayers awaiting reinvestment in eligible assets can open Savings Account-A and Fixed Deposit-B, subject to scheme conditions and applicable income-tax provisions.
- Zero-balance savings account, nil transaction charges, multiple digital deposit modes and quarterly interest payouts add to customer convenience.
- Facility available through the bank’s urban and semi-urban branches, excluding rural branches, with view-only access through Net Banking and Mobile Banking.
- Resident individuals, HUFs and eligible non-individual entities can explore the facility for qualifying capital gains arising from property, agricultural land and specified industrial and other assets.
NE BANKING BUREAU
AHMEDABAD, NOV 4
An investment clock is ticking after the sale of a property or other qualifying asset. What if your unutilised capital gains could earn interest while you prepare for the next investment?
For property sellers, investors and taxpayers navigating the complexities of capital gains taxation, an additional financial-planning avenue has opened up. HDFC Bank has commenced offering deposits under the Government-authorised Capital Gains Accounts Scheme (CGAS), 1988, enabling eligible taxpayers to park unutilised capital gains in designated savings accounts or fixed deposits while retaining the opportunity to claim tax benefits under applicable provisions of the Income-Tax Act. The facility combines an interest-earning deposit option with banking convenience, giving taxpayers valuable breathing space to plan their eligible reinvestments without allowing statutory deadlines to slip by.
Capital gains need not remain idle: A new banking avenue
HDFC Bank, one of India’s leading private sector lenders, has received authorisation from the Government of India to accept deposits and maintain accounts under the Capital Gains Accounts Scheme, 1988.
The scheme is particularly relevant to taxpayers who have transferred eligible capital assets but are unable to complete the prescribed reinvestment in a qualifying new asset before the applicable income-tax return filing deadline.
Under CGAS, eligible taxpayers can deposit the unutilised amount in designated accounts with an authorised bank within the prescribed deadline. The deposits can be maintained for the applicable reinvestment period, which may extend up to three years, depending on the nature of the asset and the relevant tax provision.
The facility is available through HDFC Bank’s Savings Account-A and Fixed Deposit-B options across its urban and semi-urban branches, excluding rural branches.
Importantly, depositing money under CGAS does not automatically confer tax exemption. The taxpayer must satisfy the eligibility conditions, deposit deadlines and subsequent reinvestment requirements prescribed under the applicable provisions.
Zero-balance account, digital deposits and quarterly interest
HDFC Bank’s CGAS offering incorporates several customer-friendly features designed to make the deposit and tracking process convenient.
Key features include:
- Easy deposits: Customers can transfer funds through NEFT, RTGS, fund transfers, IMPS and UPI, both digitally and through branches, subject to scheme procedures.
- Zero-balance requirement: Savings Account-A comes with no minimum balance requirement and nil transaction charges.
- Quarterly interest payouts: Interest is payable quarterly on savings deposits and fixed deposits, in accordance with the applicable deposit terms.
- Digital account visibility: Customers can view their account details through Net Banking and Mobile Banking, although transaction facilities are restricted.
- Account tracking: Passbooks and fixed deposit advice provide records of deposits and account particulars.
The combination of digital deposit channels, zero-balance savings facilities and quarterly interest payments offers taxpayers a convenient way to manage funds earmarked for future eligible investments.
‘Customers can both earn interest and avail tax exemption’
Highlighting the significance of the new offering, Sunali Rohra, Head – Government & Institutional Liabilities, New Economy Group and Alternate Banking Channels & Partnership, HDFC Bank, said:
“We are grateful to the Government of India for reposing faith in us as a reliable partner for implementing the CGAS. With this offering, customers can both earn interest and avail tax exemption on their unutilised capital gains. We invite customers to leverage our extensive branch network and digital prowess to securely park their unutilised capital gains.”
The bank’s entry into this segment expands the availability of authorised banking channels for taxpayers seeking to manage unutilised capital gains through the prescribed statutory framework.
Who can benefit? A range of qualifying asset categories
The CGAS facility is relevant to eligible taxpayers who have earned capital gains from the transfer of specified assets.
These include:
- Residential house property: Apartments, buildings and land forming part of qualifying residential property transactions.
- Agricultural land: Qualifying agricultural land transfers.
- Other capital assets: Assets other than residential house property, subject to the applicable provisions.
- Compulsory acquisition: Land or buildings forming part of an industrial undertaking transferred through compulsory acquisition.
- Industrial relocation: Plant, machinery, land or buildings associated with industrial undertakings shifted from urban to non-urban areas.
- Special Economic Zone relocation: Qualifying industrial assets transferred in connection with the relocation of an undertaking from an urban area to a Special Economic Zone.
The applicable eligibility provisions, nature of the new asset and investment timelines differ across these categories.
An important tax-planning opportunity — but deadlines matter
For taxpayers, one of the most important aspects of CGAS is the statutory deadline for making the deposit.
The unutilised amount must ordinarily be deposited before the applicable due date for filing the income-tax return under the relevant provision. The amount must subsequently be utilised for the prescribed investment within the stipulated period.
For instance, the time available for purchasing or constructing a residential property differs, with certain eligible investments carrying a two-year purchase window or a three-year construction window.
If the deposited amount is not utilised within the prescribed period, the unutilised portion may become taxable in the year in which the relevant time limit expires.
It is equally important to remember that interest earned on CGAS deposits is subject to applicable income-tax provisions and tax-deduction requirements.
With the Income-Tax Act, 2025 coming into effect from April 1, 2026, taxpayers should also check the corresponding provisions and section references applicable to transactions undertaken under the new tax regime.
The larger takeaway for property sellers and investors is straightforward: capital gains planning should begin well before the tax-return deadline. An authorised CGAS deposit can provide a structured, interest-earning holding avenue while taxpayers work towards their eligible reinvestment objectives.