{"id":75011,"date":"2025-11-25T15:18:24","date_gmt":"2025-11-25T09:48:24","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=75011"},"modified":"2025-11-25T15:26:40","modified_gmt":"2025-11-25T09:56:40","slug":"capital-gains-account-scheme-cgas1988","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/capital-gains-account-scheme-cgas1988\/","title":{"rendered":"Capital Gains Account Scheme (CGAS),1988"},"content":{"rendered":"<h2><b>Capital Gains Account Scheme (CGAS),1988 Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Ministry of Finance recently notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, introducing changes to the Capital Gains Account Scheme (CGAS), 1988.<\/span><\/p>\n<h2><b>About Capital Gains Account Scheme (CGAS),1988<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It was introduced by the Central Government in <\/span><b>1988 <\/b><span style=\"font-weight: 400;\">to <\/span><b>help taxpayers claim exemptions on long-term capital gains.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Under Section 54 of the Income Tax Act, income from capital gains must be reinvested within 3 years to avoid tax liability.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, there could be instances when the due date for filing income tax falls during this specified tenure.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><b>If a taxpayer is unable to invest <\/b><span style=\"font-weight: 400;\">in such a short period of time, they <\/span><b>can deposit such underutilised capital gains under CGAS.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, taxpayer<\/span><b>s must deposit such funds before filing their Income Tax Returns.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Investing the gains in this account is <\/span><b>treated the same as direct reinvestment for exemption purposes.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, <\/span><b>short-term capital gains are not eligible f<\/b><span style=\"font-weight: 400;\">or the CGAS, as exemptions apply only to long-term capital gains.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Who Can Deposit in CGAS?<\/b>\n<ul>\n<li style=\"text-align: justify;\"><b>Any taxpayer<\/b><span style=\"font-weight: 400;\"> who earns long-term capital gains and wants to claim exemption can deposit in the CGAS.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This includes <\/span><b>Individuals, Hindu Undivided Families (HUFs), Companies, Trusts, <\/b><span style=\"font-weight: 400;\">and any other person eligible for capital gains exemption.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The scheme is mainly <\/span><b>used when the taxpayer is unable to reinvest the capital gains before the due date of filing their income tax return<\/b><span style=\"font-weight: 400;\"> but intends to invest within the specified period to claim exemption.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The <\/span><b>deposited amount must then be used within the stipulated period to invest<\/b><span style=\"font-weight: 400;\"> in the eligible asset;<\/span><b> otherwise, it will be treated as taxable capital gain in the year the deadline expires.<\/b><\/li>\n<\/ul>\n<h2><b>Capital Gains Accounts (Second Amendment) Scheme, 2025<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Previously, CGAS deposits were largely limited to public sector banks and a few older institutions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the new notification,<\/span><b> all non-rural branches of 19 major private banks are now authorised <\/b><span style=\"font-weight: 400;\">to receive deposits and maintain CGAS accounts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The \u201c<\/span><b>non-rural branch\u201d condition <\/b><span style=\"font-weight: 400;\">means that only branches at <\/span><b>centres with population 10,000 or more (per 2011 census) are in scope.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\">The amended scheme explicitly <b style=\"font-size: inherit;\">defines \u2018electronic mode\u2019 of deposit <\/b><span style=\"font-weight: 400;\">to include credit\/debit cards, net banking, <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/upi\/\" target=\"_blank\">UPI<\/a><\/strong>, IMPS, RTGS, NEFT, BHIM\/Aadhaar Pay etc.<\/span><\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/www.cnbctv18.com\/personal-finance\/capital-gains-account-scheme-updated-what-the-new-rules-mean-for-taxpayers-19768163.htm\" target=\"_blank\" rel=\"nofollow noopener\">CNBC<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital Gains Account Scheme (CGAS), 1988 was introduced by the Central Government to help taxpayers claim exemptions on long-term capital gains. Read more about Capital Gains Account Scheme (CGAS),1988, Features, Latest News.<\/p>\n","protected":false},"author":23,"featured_media":74996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[3881,21,22,23],"class_list":{"0":"post-75011","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-capital-gains-account-scheme-cgas","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/75011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=75011"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/75011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/74996"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=75011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=75011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=75011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}