Capital Gains
Account Scheme

The Capital Gains Accounts Scheme (CGAS) is a government-notified scheme under the Income Tax Act, 1961. Savings Account and Term Deposit under Capital Gains Account Scheme (“CGAS”) has been enabled for NRI customers. The customers can deposit, the unutilised long-term capital gains arising from sale of capital assets if they intend to reinvest it in eligible assets as provided under the Income Tax Act.

Invest Save capital gains tax

ICICI Bank is now authorised to open Saving Account and Term Deposit under Capital Gains Account Scheme (CGAS), 1988
This is a government-notified scheme under the Income Tax Act, 1961

Key features

Flexibility to open Savings Account and Term Deposit
Allows period of 2-3 years from date of sale to reinvestment
Earn interest at the Bank’s applicable Savings Account or Term Deposit rates
Available through customer care and branches (except rural branches)

Types of Capital Gains Accounts

Savings Account
Type A
- No minimum balance requirement
- Monthly Account Statement
- No Debit Card, Chequebook and digital services
- Interest is calculated on the daily end-of-day balance and credited quarterly
- Account with single holding only
- Up to 3 nominees are allowed
Term Deposit Account
Type B
- Type A Savings Account is mandatory to open a Type B Account
- Minimum amount of ₹25,000. Maximum amount will be as per the prevailing scheme guide
- Fixed Deposit interest rate will be applicable as per the tenure and amount
- Premature closure is allowed before maturity (Penal rates applicable)
- Proceeds will only be credited to Type A Savings Account
- No Loan facility can be availed against this Deposit
- Up to 3 nominees are allowed

Important documentation

Visit branch or reach out to our customer care

Applicable for both Savings Account (Type A) and Fixed Deposit (Type B)

Copy of registered sales deed / transfer deed
Capital Gains Account Scheme Application Form (Form A)

Form E for nomination in case the customer wants to register a nomination.

Form C – for first withdrawal
Form D – for subsequent withdrawals

Cash Withdrawal (Max Limit of ₹25,000 per instance / per transaction)

Payments for amounts greater than ₹25,000 must be made only through INR Demand Draft (DD).

Closure form – Form G
Approval from the Assessing officer (AO) / Investing officer (IO) is required

Important points to note

Customers must declare the purpose as ‘purchase’ (2 years) or ‘construction’ (3 years) at the time of Account opening
In case of jointly owned assets, each co-owner must open a separate CGAS Account, corresponding to their share of Capital Gains/sale proceeds
Form C is mandatory for the first withdrawal, while Form D is required for all subsequent withdrawals
Scheme-related forms are available at ICICI Bank branches
Sale proceeds of agricultural property or farmhouse or plantation purchased or acquired by way of gift by NRI cannot be credited in this Account
NRI cannot purchase agricultural property or farmhouse or plantation from this Account

Capital Gains Account Scheme (CGAS) FAQs

What types of Accounts can be opened under Capital Gains Account Scheme?

Savings Account (Type A) and Term (Fixed) Deposit (Type B). opening a Type A is mandatory for opening a Type B account.

Can a new customer avail Capital Gains Account Scheme?

Yes, new customers can avail this scheme after opening an ICICI Bank NRO Savings Account.

What are the various forms under Capital Gains Account scheme?

Below are the types of forms available under NRI Capital Gains Account Scheme:-

What is the minimum and maximum tenure for an FD under Capital Gains Account Scheme?

Cumulative FD:

Minimum 6 months and Maximum 24 months from the date of Sales Deed, with end purpose as purchase of property
Minimum 6 months and Maximum 36 months from the date of Sales Deed, with end purpose as construction of property.

Traditional FD:

Minimum 7 days and Maximum 185 days
Traditional Quarterly: Minimum 3 months and Maximum 24 months from the date of Sales Deed, with end purpose as ‘purchase of property’

Minimum 3 months and Maximum 36 months from the date of Sales Deed, with end purpose as ‘construction of property’.

Which services are unavailable under Capital Gains Account Scheme?

Chequebook
Debit Card
Internet banking
Mobile banking

Is premature FD closure allowed?

Yes! But only in accordance with the Capital Gains Account Scheme and the Bank’s FD premature closure policy. Proceeds from the FD will be transferred to the Capital Gains Account Scheme. Penalty will be same as per Bank’s FD framework.

Is Form A required for every Deposit?

No. Form A is required only for the initial Deposit.

Can multiple accounts be opened under Capital Gains Account Scheme?

Yes, for different exemption sections.

Can deposits under Capital Gains Account Scheme (CGAS) be transferred between different banks?

No, deposits under CGAS cannot be transferred between different banks.

What is the maximum tenure of Deposit under Capital Gains Account Scheme?

Maximum Tenure is:

2 years for Purchase purpose.
3 years for Construction purpose.

The purpose must be declared at the time of Account opening and cannot be changed later.

Who can deposit funds in the Capital Gains Account Scheme?

Any individual eligible to claim Capital Gains exemption under Sections 54, 54B, 54D, 54F, and 54G (43 of 1961) of the Income Tax Act , 1961, can deposit the same in Capital Gains Account Scheme 1988.

What is the deposit limit in Capital Gains Account Scheme?

There is no upper limit on depositing in Capital Gains Account Scheme (CGAS). However, Customers are advised to consult his/her tax advisors for further guidance.

Is interest on the Capital Gains Account taxable?

Interest payment is subject to Tax Deducted at source (TDS), as per prevailing Income Tax regulations.

Can I avail a Loan against the Deposit?

Loan against Deposit is not permissible (Type B).

Can funds be withdrawn from Deposit ‘A’ (Savings Account)?

Funds can be withdrawn from Deposit ‘A’ (Savings Account) by giving an application in form ‘C’ along with the Passbook for first deposit and Form D for subsequent deposits.

Is Lien marking or security allowed on the deposited amount?

No, The deposited amount cannot be used or offered as security for any Loan or as a guarantee.

What is the procedure for Account closure in the case of the depositor’s demise, where no nomination exists?

If no nomination is registered in the Capital Gains Account Scheme, then the legal heirs shall obtain the approval of the Assessing Officer (having jurisdiction over deceased assessee / depositor) by submitting Form ‘H’.

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