Online Closure For Capital Gains Accounts: How Property Sellers Can Benefit

The Central Board of Direct Taxes (CBDT) has notified the Capital Gains Account (second amendment) Scheme, 2025, which amends the long-standing Capital Gains Account Scheme, 1988. This new amendment came into effect on November 19, 2025.

What is CGAS

The CGAS was introduced under the Income-tax Act, 1961 to allow taxpayers who had realised capital gains but are yet to reinvest the same into a new residential investment. Until reinvestment is completed, the amount remains in the CGAS account.

What Does the 2025 Amendment Change?

Key changes introduced in the 2025 Amendment are:

Now, the scheme includes gains under Section 54GA of the Income-tax Act, 1961 which deals with gains from transferring assets in shifting an industrial undertaking from an urban area to a special economic zone (SEZ).

The definition of “Deposit Office” has been broadened. Previously, only branches of certain banks were permitted; now, any bank under the Banking Regulation Act, 1949 which is authorised, can operate CGAS accounts.

The effective date of the deposit, if made by cheque/draft or electronic mode, is the date the deposit office receives the payment.

Digital account statements are now recognised.

Lakshmi Sankar, executive director, Nangia Group, says: “The amendments to the Capital Gains Accounts Scheme, 1988, are a major move in recognising the new-age payment modes. The clarification on the effective date of payment is a welcome move.”

How Property Sellers Can Benefit

People considering selling properties and looking to reinvest gains can benefit in several ways.

Greater flexibility in deposit: Sellers are no longer dependent on a cheque or draft or need to go to a limited bank branch to open the CGAS account. Electronic modes will offer a more convenient and faster way.

More banks available: The definition of a ‘deposit office’ has been broadened; now you have more choice of banks, potentially allowing you to open accounts near you and through banks you already deal with.

Clearer timelines for claiming exemptions: This amendment clarifies the exact date of deposit. In other words, you will have more certainty in meeting the deadlines. This helps avoid disputes with tax authorities.

What it Means for Potential Sellers

For property sellers who are looking to reinvest gains, the CGAS framework has just become more user-friendly and digitally aligned. The ability to deposit through electronic modes, a wider variety of banks, and reliance on digital statements will help reduce friction in the entire process.

With this amendment in place, those who are looking to park capital gains and claim exemptions have a smoother route now.