New Year, New Tax Break: ICICI Bank Rolls Out Capital Gains Account Scheme; Here’s How It Works

The Capital Gains Account Scheme (CGAS), which allows customers to deposit uninvested long-term capital gains or sale proceeds from the sale of particular capital assets, was introduced by ICICI Bank on January 1st, 2026.

This facility allows individuals to avail tax exemptions for up to 3 years while earning interest on deposited funds, according to ICICI Bank.

The scheme is open to residents and Hindu Undivided Families (HUFs) as of January 1, 2026. NRIs and non-individuals will soon be allowed to access it. It helps taxpayers who can't reinvest long-term capital gains before the deadline for filing their Income Tax Return (ITR).

To open an account, you must go to an authorized ICICI Bank branch (rural branches excluded). Currently, neither the iMobile app nor the online banking allows you to open this specific account type. Form A, the primary application form for the ICICI Bank Capital Gains Account Scheme (CGAS), a PAN card, a certificate of sale (a copy of the original asset's registered sale or transfer deed), proof of address, and recent photographs are all required for establishing an ICICI Bank CGAS account. For guidance on certain capital assets under CGAS and to claim tax exemptions, customers should get in touch with their tax advisors.

An ICICI Bank spokesperson said, "We thank the Government of India for recognising ICICI Bank as an authorised institution for CGAS deposits. With this scheme, customers can park un-invested long term capital gains, earn interest, and claim tax exemptions, while planning reinvestment for up to three years. This offering reinforces our commitment to deliver financial solutions that meet evolving customer needs."

Features and benefits of ICICI Bank Capital Gains Account Scheme (CGAS)

• Type A (Savings Account): Flexible withdrawals linked to approved reinvestment purposes.
• Type B (Term Deposit Account): Cumulative or non-cumulative formats for fixed-tenure deposits.
• Tax exemption: Deposit un-invested capital gains or sale proceeds before the ITR due date to claim exemption on long-term capital gains under relevant Income Tax sections.
• Temporary parking of funds: Up to three years to plan reinvestment without losing exemption eligibility.
• Interest earned: Similar to regular savings accounts or fixed deposits.
• Flexible reinvestment: Proceeds can be invested in property, agricultural land, or new capital assets of industrial undertaking in non-urban areas/ special economic zones depending on the CGAS chosen; withdrawal of proceeds requires proof of usage of funds.

You can secure your tax exemptions on Long-Term Capital Gains (LTCG) with the government-notified ICICI Bank Capital Gains Account Scheme (CGAS), 1988. Because all withdrawals must go via the savings variant, ICICI Bank may ask you to hold a Type A account even if you want to keep your money in a Type B account.

The withdrawal process is strictly monitored to ensure the funds are used for their intended purpose. Form C must be filed for the first withdrawal; Form D, which describes how the earlier withdrawal was used, must be submitted for any subsequent withdrawals; and the 60-Day Rule must be adhered to, requiring that the amount withdrawn be used for the designated purpose within 60 days.

The account is primarily used when you have sold an asset (like a house or land) but have not yet reinvested the proceeds into a new asset before the deadline for filing your Income Tax Return (ITR).