Banks authorized to operate account under CGAS scheme
Not all banks can be reached for opening the CGAS account, as only few government-run banks, including Canara Bank, Dena Bank, State Bank of India, Central Bank of India, Andhra Bank, Indian Overseas Bank are allowed to open the account.
Few points to take note of regarding CGAS scheme
The account with the gains is maintained mainly to invest the capital gains amount into a new property transaction either the purchase or construction. So, investment in the account in a duration of not over 2 years from the date of property sale allows the taxpayer to save on tax on capital gains.
The capital gains amount accruing out of property sale needs to be necessarily reinvested for the purchase of a residential property or incurred in constructing of a house in a time span not over 2 years and 3 years respectively from the date of property sale.
In case when the taxpayer who wish to avoids or capitalize on the available provision of tax exemption on capital gains fails to zero in on the property that he/she wishes to purchase before the due date of filing of income tax return, the capital gains amount shall be deposited in the CGAS scheme account with the bank.
Further, it is to be noted that any amount deposited in the CGAS account can be withdrawn only under the premise when the investor who realized profits from the sale of a property wishes to make another investment in property (such as in the acquisition). It is also suggested that once the amount is withdrawn from the specific and exclusive CGAS account with the bank it should be utilised in a span of not over 2 months from the date of withdrawal of such funds.