The Capital Gains Account Scheme (CGAS), 1988 is a government-notified scheme under the Income Tax Act, 1961. The scheme enables customers to temporarily park capital gains arising from the sale of specified assets, when the customer intends to reinvest the proceed in eligible assets such as residential property or land, in accordance with the provisions of the Act.

• CITY UNION BANK has been authorized to accept deposits under the Capital Gains Account Scheme (CGAS), 1988, as notified by the Government of India under the Income Tax Act, 1961.
• The scheme allows taxpayers to deposit long-term capital gains arising from the transfer of specified assets, pending reinvestment in eligible assets as prescribed under the Act.
• This scheme is available with effect from 28th January 2026.

Key Features

• Option to open a Savings Account / Fixed Deposit with Savings account.
• Reinvestment period of 2–3 years from the date of sale.
• Interest earned at applicable Savings Account or Term Deposit rates.
• Available at all branches, excluding rural branches.

Types of Capital Gains Accounts

Important Documentation

Account Opening

Applicable for both Savings Account – Type A and Term Deposit – Type B

• Copy of registered Sale Deed / Transfer Deed
• Capital Gains Account Scheme Application Form (Form A)
• Form E for nomination, if the customer opts to register a nominee.

Account Closure

• Closure Form – Form G
• Approval from the Assessing Officer

Eligibility Criteria

A Capital Gains Account can be opened by:

• Resident Individuals
• Hindu Undivided Families (HUFs)
• Minors (to be operated by the natural or legal guardian on behalf of the minor)
• City Union Bank Savings Account is mandatory to avail this scheme
• New customers are required to open a City Union Bank Savings Account to avail this scheme

Important Points to Note

• The customer must declare the purpose of investment - Purchase (2 years) or Construction (3 years) - at the time of account opening
• City Union Bank Savings Account is mandatory to avail this scheme
• New customers are required to open a City Union Bank Savings Account for availing this scheme
• Any unutilised funds after the expiry of the stipulated period shall become taxable
• In case of jointly owned assets, each co-owner must open a separate CGAS account corresponding to their respective share of capital gains
• Form C is mandatory for the first withdrawal, and Form D is required for all subsequent withdrawals
• Scheme-related forms are available at City Union Bank branches
• Click here to download CGAS FAQ