IndusInd Bank Launches Capital Gains Account Scheme

Selling a property or any major asset often creates a tax dilemma for investors. Under Indian tax laws, capital gains must be reinvested within a specified period to claim exemptions. However, investors frequently struggle with timing, they may sell an asset today but need months to decide where to reinvest.

To address this gap, IndusInd Bank has launched the Capital Gains Account Scheme (CGAS), allowing customers to temporarily park unutilised capital gains while remaining eligible for tax benefits under the Income-tax Act, 1961. 

The launch follows authorisation from the Central Board of Direct Taxes (CBDT), enabling the bank to accept deposits under the Capital Gains Account Scheme, 1988.

What Is the Capital Gains Account Scheme (CGAS)?

The Capital Gains Account Scheme is a government-backed framework designed for taxpayers who cannot immediately reinvest proceeds from the sale of capital assets but still want to claim tax exemptions.

Instead of losing eligibility due to missed deadlines, investors can deposit the unutilised gains into a designated account until reinvestment is completed within statutory timelines.

Under IndusInd Bank’s offering, deposits can be made from proceeds arising from the sale of:

• Residential properties and flats
• Farmhouses and agricultural land
• Urban land
• Land located in Special Economic Zones (SEZs)

This ensures investors remain compliant while taking time to make informed reinvestment decisions.

Two Account Options Offered by the Bank

The scheme provides flexibility through two account structures:

Type A – Savings Account

• Works like a regular savings account
• Allows multiple deposits and withdrawals
• No minimum balance requirement
• Earns applicable savings interest

Type B – Term Deposit Account

• Fixed-tenure deposits starting from ₹10,000
• Higher interest aligned with deposit tenure
• Suitable for investors with defined reinvestment timelines

Both options help investors preserve liquidity while maintaining tax eligibility under Sections 54 to 54GB of the Income-tax Act.

Who Can Open the Account?

The scheme is available to a wide range of customers, including:

• Resident individuals
• Hindu Undivided Families (HUFs)

Accounts can be opened at authorised non-rural branches of the bank.

Why This Launch Matters

The government has been expanding access to CGAS by authorising more private banks, improving convenience for taxpayers managing capital gains obligations. Greater participation by private lenders simplifies compliance and widens access beyond traditional public-sector banks.

For investors, the scheme reduces pressure to rush into reinvestments simply to save tax, enabling better financial planning and asset allocation decisions.

Conclusion

IndusInd Bank’s Capital Gains Account Scheme bridges an important gap between tax compliance and investment planning. By offering a secure parking facility for capital gains along with flexible savings and term deposit options, the bank aims to make reinvestment decisions more structured, compliant, and investor-friendly — especially at a time when real estate and asset transactions continue to rise.