Karnataka Bank has launched the Capital Gains Account Scheme (CGAS), providing customers with a convenient and compliant option to park unutilised capital gains while planning eligible reinvestments under the Income-tax Act.
The scheme is aimed at taxpayers who have earned capital gains from the transfer of eligible capital assets but are unable to complete the prescribed reinvestment within the stipulated timeframe. By depositing the eligible capital gains into a CGAS account within the prescribed period, customers can avail applicable tax benefits, subject to compliance with the relevant tax provisions and regulations.
Karnataka Bank is among the authorised banks permitted to offer the scheme, improving access for taxpayers looking to manage their capital gains through authorised banking channels.
Under CGAS, customers can open two types of accounts:
Capital Gains Account-A: A savings deposit account offering flexibility for deposits and withdrawals.
Capital Gains Account-B: A term deposit account for parking funds for a longer period.
The scheme can be used for eligible reinvestments, including the purchase or construction of residential property and other qualifying investments, as permitted under applicable provisions of the Income-tax Act.
Karnataka Bank Managing Director and CEO Raghavendra S Bhat said the launch reflects the bank’s focus on providing customer-centric solutions that help customers manage their finances effectively while supporting compliant tax planning and investment decisions.
Customers can approach their nearest Karnataka Bank branch for details on account opening, documentation, operational guidelines and applicable terms and conditions.