ICICI Bank launches Capital Gains Account Scheme starting January 1

Starting January 1, CGAS will be available for all resident individuals and Hindu Undivided Families (HUFs) and will soon be available for non-resident Indians.

ICICI Bank on January 1 announced a new Capital Gains Account Scheme (CGAS) for customers to deposit un-invested long-term capital gains or sale proceeds from the sale of specified capital assets, a company statement said.

The scheme permits account holders to avail tax exemptions for up to three years while earning interest on deposited funds, the statement said.

The launch comes after the Central government cleared ICICI Bank as an authorised institution to handle CGAS deposits, the statement added.

Starting January 1, CGAS will be available for all resident individuals and Hindu Undivided Families (HUFs) and will soon be available for non-resident Indians.

The scheme is beneficial for taxpayers who are not able to reinvest long-term capital gains before the Income Tax return deadline. The account under the new scheme can be opened by visiting the nearest bank branch, the bank statement 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,” an ICICI Bank spokesperson said.

Key features & benefits of CGAS:

-Type A (Savings Account): Flexible withdrawals linked to approved reinvestment purposes

-Type B (Term Deposit Account): Cumulative or non-cumulative formats for fixed-tenure deposits

-Tax exemption: Deposit un-invested capital gains or sale proceeds before the ITR due date to claim exemption on long-term capital gains under relevant Income Tax sections

-Temporary parking of funds: Up to three years to plan reinvestment without losing exemption eligibility

-Interest earned: Similar to regular savings account or fixed deposits.

-Flexible reinvestment: Proceeds can be invested in property, agricultural land, or new capital assets of industrial undertaking in non-urban areas/ special economic zones depending on the CGAS chosen; withdrawal of proceeds requires proof of usage of funds