ICICI Bank has begun offering a government‑authorised Capital Gains Account Scheme (CGAS) designed to help taxpayers park uninvested long‑term capital gains and sale proceeds while they prepare reinvestments that preserve tax exemptions. The facility went live after the government approved ICICI Bank as an authorised institution to accept CGAS deposits.
How the Capital Gains Account Scheme works
The scheme allows eligible taxpayers to deposit sale proceeds from specified capital assets in a bank account and claim exemption on long‑term capital gains under the Income Tax provisions, provided they adhere to reinvestment rules. Customers can hold funds in the account for up to three years to arrange suitable investments without losing exemption eligibility.
ICICI Bank said the CGAS will be available to resident individuals and Hindu Undivided Families (HUFs) from 1 January 2026. The bank added that accounts for non‑individuals and non‑resident Indians will be introduced shortly. Deposits may be opened at most ICICI Bank branches, excluding designated rural locations as per CGAS regulations.
Deposit options and interest
ICICI Bank offers two variants under the scheme. Type A functions as a savings account, providing flexible access and withdrawals linked to approved reinvestment purposes. Type B is a term deposit account available in cumulative or non‑cumulative formats for fixed tenures. The bank said interest rates on CGAS deposits are comparable to those on its regular savings accounts and fixed deposits.
The availability of both flexible and fixed options aims to suit taxpayers who need short‑term parking for gains as well as those who prefer a predictable return while they arrange reinvestments such as purchase of property or acquisition of specified capital assets.
Eligibility, tax benefits and withdrawal rules
The primary benefit is procedural: taxpayers who cannot complete reinvestments before filing their income tax returns can deposit the proceeds in a CGAS account by the ITR due date and preserve their exemption claim on long‑term capital gains. Withdrawals from the account to effect reinvestment require documentary proof showing the funds have been used for qualifying purposes, such as purchase of a residential property, agricultural land where permissible, or specified capital assets for industrial undertakings in non‑urban or designated zones.
ICICI Bank emphasised that customers should consult their tax advisers to confirm whether particular assets or transactions meet the conditions under the Income Tax Act and to ensure correct tax treatment. The bank also reminded customers that CGAS rules prescribe where accounts may be opened and the documentation required to substantiate withdrawals for reinvestment.
By offering CGAS, ICICI Bank aims to provide a practical route for taxpayers to manage timing mismatches between asset sales and reinvestments while complying with tax rules. The move could reduce last‑minute compliance pressure on filers and provide a controlled mechanism to preserve exemptions while funds are allocated to qualifying investments.
Customers interested in opening a Capital Gains Account should visit their nearest ICICI Bank branch for details of documentation, account setup and applicable interest rates.
Key Takeaways:
- ICICI Bank has begun offering the Capital Gains Account Scheme to let taxpayers park long‑term capital gains and claim exemptions while planning reinvestment.
- The scheme, available from 1 January 2026 for resident individuals and HUFs, provides Type A (savings) and Type B (term deposit) options.
- Funds can be held up to three years to meet reinvestment deadlines; withdrawals require proof of investment use.
- Customers should consult tax advisers to confirm eligibility and tax treatment before depositing proceeds.
