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Capital Gains Account Scheme (CGAS), 1988, saw major updates via the Capital Gains Accounts (Second Amendment) Scheme, 2025, notified on November 19, 2025, by the Central Board of Direct Taxes (CBDT).​
 
About Capital Gains Account Scheme (CGAS), 1988

• The CGAS 1988, is a scheme introduced under the Income Tax Act, 1961.
• It allows taxpayers to deposit unutilized capital gains from the sale of certain assets into a designated account in authorized banks.
• This deposit helps taxpayers claim exemption from capital gains tax if the gains are reinvested in specified assets within stipulated timelines.

 Key Amendments

• The scheme now expands to include Section 54GA for industrial undertakings shifting to Special Economic Zones, alongside existing Sections 54-54GB.
• It authorizes non-rural branches of 19 private banks (like HDFC Bank, ICICI Bank) plus public sector banks to accept deposits, broadening access beyond earlier limits.
• Electronic payments via UPI, NEFT, RTGS, cards, and net banking are permitted, with the deposit date as the receipt date upon realization.​

 Digital Enhancements

• Electronic statements equal passbooks for verification, and forms now support digital transaction details like RTGS numbers.
• From April 1, 2027, account closures require electronic filing via Form G/H with digital signatures or e-verification codes, managed by the Principal Director General of Income-tax (Systems).​

 Taxpayer Benefits

• These changes modernize the 1988 scheme for easier compliance when reinvesting long-term capital gains before ITR deadlines, aiding exemptions without immediate asset purchase.
• Experts note improved convenience for property sellers and businesses, though rural branches remain excluded.​

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