ICICI Bank has introduced the Capital Gains Account Scheme (CGAS) for resident individuals and Hindu Undivided Families, following authorisation from the Government of India.
The scheme allows customers to deposit unutilised long-term capital gains or sale proceeds from specified capital assets, ensuring continued eligibility for tax exemptions as prescribed under the Income Tax Act.
The facility is aimed at taxpayers who are unable to reinvest their capital gains in eligible assets before filing their income tax returns. By depositing the funds into a CGAS account, such investors can safeguard their tax benefits while gaining additional time to complete reinvestment in accordance with statutory timelines.
ICICI Bank will offer the scheme through its authorised non-rural branches, in line with government guidelines. Customers can choose between two account types under the scheme. Type A accounts function like savings accounts, offering flexibility for withdrawals related to approved reinvestment purposes while earning interest similar to regular savings deposits. Type B accounts are term deposit accounts, available in cumulative and non-cumulative options, and earn interest comparable to standard fixed deposits.
Funds deposited under the Capital Gains Account Scheme can be held for up to three years, providing investors with a defined window to reinvest in eligible assets such as residential property, agricultural land, industrial undertakings in non-urban areas, or notified economic zones. With this launch, ICICI Bank expands its suite of tax-compliant deposit products, catering to investors seeking structured solutions for capital gains management.
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