IndusInd Bank has introduced a Capital Gains Account Scheme (CGAS), offering customers a route to park long-term capital gains while planning reinvestments and availing tax exemptions under the Income-tax Act, 1961.
“The scheme provides a secure and compliant facility for holding unutilised capital gains, allowing customers to make well-informed reinvestment decisions, within prescribed statutory timelines,” it said in an exchange filing dated March 26.
The move follows regulatory clearance from the Central Board of Direct Taxes (CBDT), which has authorised the bank to accept deposits under the Capital Gains Account Scheme, 1988.
The scheme is designed to help taxpayers temporarily hold unutilised capital gains arising from the sale of specified assets, such as residential property, flats, agricultural land, farmhouses, urban land, and plots located in Special Economic Zones, until they are reinvested within the timelines prescribed by law.
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IndusInd Bank is offering two variants under the scheme. The Type A account functions as a savings account, allowing flexible deposits and withdrawals without a minimum balance requirement, alongside applicable savings interest. Meanwhile, the Type B option is structured as a term deposit, with a minimum investment of Rs 10,000 and relatively higher returns, aligned with reinvestment horizons.
The CGAS will be available at authorised non-rural branches of the bank and is open to a wide set of customers, including resident individuals, Hindu Undivided Families (HUFs), non-individual entities, and Non-Resident Indians (NRIs).
To open an account, applicants must submit a completed Form A, provide their PAN card, furnish self-attested KYC documents classified as Officially Valid Documents (OVDs), and attach a recent passport-sized photograph. A sale or transfer deed, along with a nomination form (Form E), may also be required where applicable.
Closure requests must be made using Form G, supported by clearance from the jurisdictional Income Tax Assessing Officer and any other necessary paperwork.
The scheme does not allow the opening of joint accounts. Only capital gains liable to tax in India qualify under the scheme. An individual account can be used against only one set of sale proceeds.
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