Capital Gains Account Scheme Now Goes Digital: Key Updates Issued by the Department
The Department has notified amendments to the Capital Gains Accounts framework with an objective to streamline deposits, withdrawals, and closure procedures through electronic platforms. These changes align the Scheme with modern banking systems and move away from exclusive reliance on physical instruments such as cheques and demand drafts. The updated framework is termed the Capital Gains Accounts (Second Amendment) Scheme, 2025.
The changes take effect from the date of publication in the Official Gazette.
Broadened Scope of Eligible Banks
The term Deposit Office now includes any authorised branch of scheduled banks permitted by Government notification to accept deposits and maintain accounts under the Scheme. This widens operational access for depositors, eliminating dependency on select institutions and increasing reach across locations.
It covers all the bank which define under "banking company" as defined under clause (c) of section 5 of the Banking Regulation Act, 1949(10 of 1949).
Capital Gains Account Scheme, 1988, and in continuation to the earlier notification numbers G.S.R.725(E), dated the 22nd June, 1988 and G.S.R 859(E), dated the 30th November, 2012, the Central Government hereby authorises all the branches (except rural branches) of the following banks to receive deposits and maintain accounts under the said Scheme, namely:
1.HDFC Bank Ltd;
2.ICICI Bank Ltd
3.Axis Bank Ltd
4.City Union Bank Ltd
5.DCB Bank Ltd
6.Federal Bank Ltd
7.IDFC FIRST Bank Ltd
8.IndusInd Bank Ltd
9.Jammu and Kashmir Bank Ltd
10.Karnataka Bank Ltd
11.Karur Vysya Bank Ltd
12.Kotak Mahindra Bank Ltd
13.RBL Bank Ltd
14.South Indian Bank Ltd
15.Yes Bank Ltd
16.Dhanlaxmi Bank Ltd
17.Bandhan Bank Ltd
18.CSB Bank Ltd
19.Tamilnad Mercantile Bank Ltd
Recognition of Electronic Payments
The Scheme now expressly recognises electronic payment modes for making deposits.
Accepted electronic channels now include:
1.Credit Card
2.Debit Card
3.Net Banking
4.IMPS
5.UPI
6.RTGS
7.NEFT
8.BHIM Aadhaar Pay
This transition marks a shift from paper-based transactions to secure digital modes, ensuring faster processing and eliminating delays caused by instrument clearance.
Effective Date of Deposit – Clarified
When an amount is deposited via cheque, draft, or electronic mode, the effective date will now be the date on which such instrument or electronic transfer is received at the Deposit Office, subject to realisation.
Electronic Statements Issued in addition to Physical Passbooks
Wherever the Scheme earlier mandated submission or verification through physical passbooks, the law now recognises electronic statements of account as valid.
This is significant for:
1.Deposits
2.Withdrawals
3.Refunds
4.Account operations
Account Closure through Electronic Filing (Effective 1 April 2027)
Closure applications will now be mandatorily filed electronically, authenticated using either digital signature or electronic verification code.
Electronic Mode Inserted Across Forms
Forms under the Scheme now incorporate electronic mode references, particularly in Form A and Form C. Additional fields have been inserted to capture online transaction references such as RTGS, IMPS, NEFT, and other digital identifiers.
Summary
The amendments overhaul a decades-old, manual process-dependent framework and introduce full digital operability for deposits, withdrawals, statements, and closure of accounts. The revised Scheme enhances accessibility, reduces procedural delays, and aligns capital gains compliance with modern banking and electronic authentication systems.
You can access notification from following Links:
https://incometaxindia.gov.in/communications/notification/notification-161-2025.pdf
https://incometaxindia.gov.in/communications/notification/notification-162-2025.pdf
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