Capital Gains Accounts Scheme Major 2025 Update You Must Know (Effective 19 Nov 2025)

The Capital Gains Accounts Scheme (CGAS) has always been a lifeline for taxpayers who want to park their unutilised long-term capital gains (LTCG) before filing their Income Tax Return (ITR). This ensures they remain eligible for exemptions under sections like 54, 54F, and now 54GA of the Income Tax Act.

Now, with the latest amendments notified by the Central Board of Direct Taxes (CBDT) effective 19th November 2025, the scheme has been modernised to match India’s digital era. The focus is on convenience, wider access, and paperless compliance.

Let’s break down the big changes:

1. Wider Access – 19 Private Banks Added

Earlier, CGAS accounts could only be opened in public sector banks (PSBs) and IDBI Bank. That’s changing now.

• Expanded Network: 19 private banks are authorised to accept deposits and maintain CGAS accounts.
• Key Banks Included: HDFC Bank, ICICI Bank, Axis Bank, South Indian Bank, and many more.
• Benefit for Taxpayers: You can now open and operate CGAS accounts at a much larger number of branches across India, not just PSBs.

This means more convenience and accessibility, especially for urban taxpayers.

2. Digital Transactions – Paperless Revolution

Gone are the days when you had to rely only on cheques or demand drafts.

• Accepted Modes: UPI, IMPS, NEFT/RTGS, Net Banking, Credit/Debit cards, and even BHIM Aadhaar Pay.
• Effective Deposit Date: For e-payments, the deposit date (for claiming exemption) will be the date the bank receives your payment along with the CGAS application (Form A or B).

This is a big step towards seamless, cashless compliance.

3. Streamlined Operations & Documentation

The scheme is now designed to save time and reduce paperwork.

• Digital Statements: No more physical passbooks. You’ll get electronic statements for easy record-keeping.
• Online Account Closure: From 1st April 2027, you can close your CGAS account online using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

This removes the hassle of physical applications and makes compliance faster.

4. Extended Scope – Section 54GA Included

The scheme now formally covers exemptions under Section 54GA.

• New Coverage: Capital gains from transferring assets (like land, building, machinery, or plant) during relocation of an industrial undertaking from an urban area to a Special Economic Zone (SEZ).
• Purpose: Encourages industrial development in SEZs while giving businesses a compliant way to park their gains.

This makes CGAS more useful for industries planning strategic relocations.

Preparation Checklist for Taxpayers

Here’s how you can benefit from these updates:

• Choose your bank wisely: With private banks now included, you have more options.
• Go digital: Use UPI, Net Banking, or cards for faster deposits.
• Keep records ready: Digital statements make reconciliation easier.
• Plan ahead: If you’re relocating an industry, CGAS now supports Section 54GA exemptions.
• Don’t delay: Open and fund your CGAS account well before the ITR deadline to secure exemptions.

Final Word

These changes, effective 19th November 2025, mark a major leap in making CGAS more modern, accessible, and efficient. With digital payments, private bank access, and online closures, taxpayers can now manage their capital gains exemptions with far less hassle. Stay informed, and use these updates to simplify your tax planning!

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