Capital Gains Account Scheme 2025: Latest Amendments, Digital Compliance & Step-by-Step Guide

 Capital Gains Account Scheme 2025: Latest Amendments, Digital Compliance & Step-by-Step Guide

Discover the latest updates in the Capital Gains Account Scheme (Second Amendment), 2025. Learn about new digital deposit options, expanded bank coverage, and compliance rules under Sections 54, 54F, and 54GA.

Introduction

    The Capital Gains Account Scheme (CGAS) is a crucial mechanism for taxpayers in India who wish to claim exemptions under Sections 54, 54F, and 54GA of the Income Tax Act. The Second Amendment, 2025, modernizes the scheme by introducing digital banking features, expanding bank coverage, and clarifying compliance processes.
    कैपिटल गेन अकाउंट स्कीम (Capital Gains Account Scheme) आयकर अधिनियम की एक महत्वपूर्ण व्यवस्था है, जो करदाताओं को उनकी पूंजीगत लाभ राशि को सुरक्षित रखने और निर्धारित समय सीमा में निवेश करने का अवसर देती है। 2025 के दूसरे संशोधन ने इस स्कीम को और आधुनिक बनाया है, जिसमें डिजिटल भुगतान विकल्प, अधिक बैंक कवरेज और ऑनलाइन क्लोजर जैसी सुविधाएँ शामिल हैं। यह बदलाव करदाताओं के लिए प्रक्रिया को सरल, पारदर्शी और समयानुकूल बनाता है।

What is the Capital Gains Account Scheme?

CGAS allows taxpayers to park unutilized capital gains in a designated account until they invest in specified assets, ensuring eligibility for tax exemptions under:

• Section 54 – Sale of residential property and purchase/construction of another.
• Section 54F – Sale of any asset and purchase of residential property.
• Section 54GA – Shifting an industrial undertaking from an urban area to a Special Economic Zone (SEZ).

---

Key Amendments in 2025

1. Expanded Coverage

• Section 54GA now included for SEZ relocation benefits.

2. Wider Bank Network

• CGAS accounts can now be opened in:
• SBI and subsidiaries
• Nationalized banks
• Private sector banks like HDFC, ICICI, Axis, Kotak, Yes Bank
• Small finance banks
  (Rural branches with population <10,000 excluded)

3. Digital Deposit Options

• Accepted modes:
• Net Banking, UPI, IMPS
• RTGS, NEFT
• Credit/Debit Cards
• BHIM Aadhaar Pay

4. Effective Date Clarification

• Date of deposit = Date payment and application received by the bank (subject to realization).

5. Electronic Statements

• Banks can issue digital statements instead of physical passbooks.

6. Mandatory Online Closure from April 1, 2027

• Forms G & H to be filed electronically using:
• Digital Signature Certificate (DSC) or
• Electronic Verification Code (EVC)

---

Compliance Guide for Taxpayers

Step 1 – Eligibility Check

• Confirm exemption under Sections 54, 54F, or 54GA.
• Ensure investment timeline compliance (usually 2–3 years).

Step 2 – Opening a CGAS Account

• Visit an authorized bank (check updated list).
• Submit:
• Form A (application for opening account)
• PAN, address proof, and sale deed copy.
• Choose:
• Type A – Savings account (withdrawals allowed)
• Type B – Term deposit (fixed tenure)

Step 3 – Deposit Process

• Deposit unutilized capital gains via:
• Net Banking, UPI, NEFT, RTGS
• Cheque/Demand Draft (date of receipt matters)
• Keep acknowledgment and digital statement for records.

Step 4 – Withdrawal for Investment

• Submit Form C for withdrawal.
• Use funds strictly for eligible investment (property, SEZ relocation).

Step 5 – Closing the Account

• After investment or expiry:
• File Form G or H online (mandatory from April 2027).
• Authenticate via DSC/EVC.
• Bank will release remaining funds after Income Tax Officer approval.

---

Old vs New Provisions (Quick Comparison Table)

Feature	Old Rules	New Rules (2025)
Bank Coverage	SBI & nationalized	SBI, Private Banks, SFBs
Deposit Mode	Cheque/DD only	UPI, NEFT, RTGS, Cards
Statements	Physical Passbook	Digital Statements
Closure Process	Manual Forms	Online DSC/EVC (2027)

---

Why These Changes Matter

• Convenience: Digital deposits and online closure reduce paperwork.
• Accessibility: More banks authorized for CGAS accounts.
• Transparency: Clear rules on deposit date and compliance.

---

हिंदी में संक्षिप्त विवरण

कैपिटल गेन अकाउंट स्कीम 2025 के नए नियमों के तहत अब करदाता नेट बैंकिंग, UPI, NEFT, RTGS जैसे डिजिटल माध्यमों से राशि जमा कर सकते हैं। पहले केवल SBI और राष्ट्रीयकृत बैंक ही अधिकृत थे, लेकिन अब निजी बैंक और स्मॉल फाइनेंस बैंक भी शामिल किए गए हैं। इसके अलावा, 1 अप्रैल 2027 से खाते का क्लोजर केवल ऑनलाइन माध्यम से होगा, जिसमें डिजिटल सिग्नेचर या ईवीसी का उपयोग अनिवार्य होगा। यह संशोधन करदाताओं को सेक्शन 54, 54F और 54GA के तहत छूट पाने में अधिक सुविधा प्रदान करता है।

---

Conclusion

The Capital Gains Account Scheme (Second Amendment), 2025 is a game-changer for taxpayers seeking exemptions under Sections 54, 54F, and 54GA. With digital banking integration and simplified compliance, managing capital gains has never been easier.