THEBUSINESSBYTES BUREAU
MUMBAI, JANUARY 2, 2026
ICICI Bank on Friday announced the launch of the Capital Gains Account Scheme (CGAS), offering taxpayers a structured avenue to deposit un-invested long-term capital gains or sale proceeds while claiming eligible tax exemptions and earning interest on the parked funds.
The launch follows the Government of India’s approval of ICICI Bank as an authorised institution to accept deposits under the Capital Gains Account Scheme. With this move, the bank expands its suite of tax-efficient financial solutions aimed at addressing the evolving needs of individual investors.
Effective January 1, 2026, the scheme is available to resident individuals and Hindu Undivided Families (HUFs), with the facility set to be extended to non-individual entities and non-resident Indians (NRIs) in the near future. The scheme is particularly beneficial for taxpayers who are unable to reinvest their long-term capital gains before the due date for filing income tax returns, allowing them to retain eligibility for tax exemptions for a period of up to three years.
Customers can open a Capital Gains Account by visiting their nearest ICICI Bank branch, excluding rural branches as per CGAS regulations. Under the scheme, funds can be deposited in a savings account-type structure that allows flexible withdrawals linked to approved reinvestment purposes, or in a term deposit format with options for cumulative or non-cumulative interest, similar to regular fixed deposits.
An ICICI Bank spokesperson said the authorisation reflects the government’s trust in the bank’s capabilities and compliance standards. “With the Capital Gains Account Scheme, customers can safely park un-invested long-term capital gains, earn interest, and claim tax exemptions while planning reinvestment over a three-year horizon. This launch underscores our commitment to delivering practical and customer-centric financial solutions,” the spokesperson said.
The scheme enables taxpayers to deposit capital gains or sale proceeds before the income tax return filing deadline to claim exemptions under relevant sections of the Income Tax Act. During the permitted period, the funds can be reinvested in eligible assets such as residential property, agricultural land, or new capital assets of an industrial undertaking in non-urban areas or special economic zones, depending on the applicable provisions. Withdrawals from the account require documentary proof of utilisation, ensuring adherence to CGAS norms.
