12:20 PM IST – ICICI Bank has officially started accepting deposits under the Capital Gains Account Scheme (CGAS), 1988. The bank launched it on January 1, 2026, via News Room. This gives property or asset sellers a timely and structured way to protect capital gains tax exemptions during planning reinvestment.
The CGAS is a government-notified scheme under the Income Tax Act, 1961. This is designed for situations where a taxpayer sells an asset. such as a common property or land. but is unable to immediately reinvest the gains in another eligible asset before the income tax return (ITR) filing deadline.
Why property sellers are paying attention to this
In India, selling a property comes with lots of delays. The reasons are documentation, registration, negotiations, finding, and construction timelines. While the law allows 2 years for purchase and 3 years for construction of a new property to claim capital gains exemption But the ITR deadline arrives much earlier and every year.
For most sellers, the challenge is not about saving tax, it’s about timing. Deals get delayed, builders miss deadlines, or the right property simply does not show up when expected.
In many cases, people end up paying capital gains tax not because they do not want to reinvest, but because the clock moves faster than the property market.
This gap between selling and reinvesting is where CGAS quietly fits in. It doesn’t change tax rules or offer shortcuts. It simply gives sellers time to make a proper decision without rushing into the next purchase.
This is where CGAS becomes useful in real situations.
Instead of paying capital gains tax immediately, sellers can temporarily keep the unused amount in a CGAS account. It provides a hold on to their tax benefit, and use it later when they actually buy or build a property, all as per the government rules.
Now that ICICI Bank has started offering this scheme, many property sellers in cities and nearby towns will find it much easier to use.
How ICICI Bank’s CGAS works
ICICI Bank offers two types of Capital Gains Accounts:
Type A – Savings Account
- No minimum balance requirement
- Used for holding and withdrawing funds for property payments
- No debit card or cheque book
- Interest is calculated daily and credited quarterly
- Single holder account (up to 3 nominees)
Type B – Term Deposit (FD)
- Type A account is mandatory
- Minimum deposit: ₹10,000
- FD interest as per tenure and amount
- Premature closure allowed (penalty applicable)
- Maturity proceeds are credited only to the Type A account
- No loan facility against the FD
Time limits you must remember
| Purpose | Allowed Time |
|---|---|
| Purchase of property | Up to 2 years from the date of sale |
| Construction of property | Total 3 years from the date of sale |
If the money is not used within this period, the unutilised amount becomes taxable.
Eligibility & availability
- Resident Individuals
- Hindu Undivided Families
- Minors (via guardian only)
An ICICI Bank Savings Account is mandatory. The scheme is available at all ICICI Bank branches except rural branches.
Capital Gains Account Scheme: ICICI Bank vs SBI
| Point that matters | ICICI Bank | SBI |
|---|---|---|
| Scheme launch | Started from Jan 1, 2026 | Available for many years |
| Account options | Savings (Type A) + FD (Type B) | Savings (A) + TDR/STDR (B) |
| Minimum FD amount | ₹10,000 | ₹1,000 |
| Reinvestment time | 2 yrs (purchase) / 3 yrs (construction) | Same: 2 yrs / 3 yrs |
| Interest earned | As per ICICI savings/FD rates | As per SBI savings/FD rates |
| Branch availability | All branches except rural | All branches except rural |
| Who may prefer it | Private-bank service seekers | PSU banking comfort |
Both banks follow the same CGAS, 1988 rules. The real difference is mainly in banking experience and service style. 1 is the biggest PSU Bank, and 1 is one of the biggest Private Banks.
Important compliance points
- Purpose (purchase or construction) must be declared at account opening
- Separate CGAS accounts are required for each co-owner in joint property sales
- Form C is required for the first withdrawal, Form D for subsequent ones
- Income Tax Officer approval is mandatory at account closure
If you have sold property recently and reinvestment is still in progress, for many sellers, this can simply prevent a tax payment that was not meant to happen in the first place. taxpayers now have one more reliable option to manage capital gains smartly and legally.
It’s also worth noting that CGAS is not something most sellers discover on their own. In practice, it usually comes up during discussions with a chartered accountant. Often, after the sale has already happened. Wider availability through large banks helps close that awareness gap.
