Introduction
The Ministry of Finance (Department of Revenue) has notified the Capital Gains Accounts (Second Amendment) Scheme, 2025 on 19th November 2025 by way of Notification No. 161 introducing the significant changes to Capital Gains Account Scheme, 1988. This notification shall come into effect from the date of publication in the Official Gazette.
What is Capital Gain Account?
Capital Gains account is a type of an account which allows the taxpayer to deposit their capital gains amount temporarily in a designated bank.
By depositing the capital gains amount in this account the taxpayers will have some more time to utilise this amount for purchase or construction of residential property, purchase of agricultural land, investing in eligible startup.
Amendments to CGAS
Introduction of Section 54GA
Section 54GA (capital gains arising on shifting an industrial undertaking from an urban area to a Special Economic Zone) is now eligible for CAGS after the amendment of this scheme.
After this amendment taxpayers eligible under section 54GA can deposit unutilised capital gains in the CAGS account
Definition of Deposit office updated
As per the amendment scheme 2025, the ‘Deposit Office‘ means any branch or branch office of
- The State Bank of India or
- Subsidiary Banks of SBI
- New Banks constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act and
- A Banking Company as defined in Section 5(c) of the Banking Regulation Act,1949.
Payments through electronic mode and digital records
A new term electronic mode has been inserted after the words cheque or by draft.
“”Electronic Mode” means payment by use of electronic clearing system through a bank account
or by way of any of the following modes, namely
- Credit card
- Debit card
- Net banking
- IMPS (Immediate Payment Service)
- UPI (Unified Payment Interface)
- RTGS (Real Time Gross Settlement)
- NEFT (National Electronic Funds Transfer), and
- BHIM (Bharat Interface for Money) Aadhaar Pay
With the introduction of the electronic mode, the word electronic statement of account has also been inserted. In the amendment scheme the word electronic statement of account has been inserted after the words “together with the passbook” or “in the passbook”
Closure of CAGS to be made online
The option for closure of the account through electronic mode either through digital signature or electronic verification code to be made applicable from 1st April 2027.
Changes in Form A & Form C
The following changes are to be effected in Form A & Form C
- After the symbol, figures and letter “54G/”, the symbol, figures and letters “54GA/” shall be inserted.
- After the words “Demand Draft”, the symbols and words “/*by electronic mode” shall be inserted
- In Form A after the words and letters “Demand Draft No…dated… drawn on …….”, the symbols and words “/* by electronic mode” shall be inserted.”
- In Form C under the heading “FOR THE USE OF DEPOSIT OFFICE”, in clause (ii), after sub-clause (b), the following sub-clause shall be inserted, namely: “RTGS/IMPS/NEFT/Transaction No……………… dated………”
Official Notification
The official notification is as under:
Download Official Notification (PDF)
Capital Gains Accounts (Second Amendment) Scheme, 2025 – Gazette Notification dated 19 November 2025.
