ICICI Bank Launches CGAS for Tax-Exempt Deposits from 1 January 2026On January 1, 2026, ICICI Bank L...

Rojgar4u Team January 05, 2026

ICICI Bank Launches CGAS for Tax-Exempt Deposits from 1 January 2026On January 1, 2026, ICICI Bank Limited launched the Capital Gains Account Scheme (CGAS), 1988, under the Income Tax (IT) Act, 1961, allowing taxpayers to deposit un-invested long-term capital gains from specified assets, earn interest, and avail tax exemptions for up to three years, effective from 1 January 2026.

What? Launch of Capital Gains Account Scheme (CGAS)
By Whom? ICICI Bank
Effective Date: January 1, 2026
Eligibility: Resident individuals and Hindu Undivided Families (HUFs); non-individuals and NRIs soon
Purpose: Park un-invested long-term capital gains before reinvestment to retain Income Tax exemptions
Interest: Comparable to savings accounts or fixed deposits
Account Types: Type A (Savings Account), Type B (Term Deposit Account)

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About Capital Gains Account Scheme (CGAS):
Deposits: Un-invested long-term capital gains or sale proceeds can be deposited before the Income Tax Return (ITR) due date to claim tax exemptions.
Parking: Funds can remain in the account for up to three years while earning interest at rates similar to savings or term deposits.
Reinvestment Options: Proceeds can be invested in property, agricultural land, or new capital assets of industrial undertakings in non-urban areas or Special Economic Zones (SEZs), depending on account type
Withdrawal: Withdrawals require proof of fund usage, with Form C for the first, Form D for subsequent withdrawals, and any unutilized funds after three years become taxable.
Types of Accounts:

Type A: A savings account (SA) with flexible withdrawals permitted only for approved reinvestment purposes and without cheque book or debit card facilities.
Type B: A fixed-tenure term deposit (FD) available in cumulative or non-cumulative formats, requiring a minimum deposit of Rs.10,000 and offering interest rates comparable to regular fixed deposits.

Eligibility & Access: The scheme is available to resident individuals and Hindu Undivided Families (HUFs), with plans to extend it to Non-Resident Indians (NRIs) and non-individual entities, and accounts can be opened at ICICI Bank branches across India, excluding rural locations as per CGAS norms.
Note: Several other banks, including HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank and others, are also authorised to provide similar CGAS services at their non-rural branches.
About ICICI Bank Limited:
Managing Director (MD) & Chief Executive Officer (CEO) – Sandeep Bakhshi
Headquarters -Mumbai, Maharashtra
Incorporated– 1994