Private sector lender IndusInd Bank has introduced a Capital Gains Account Scheme (CGAS), aimed at enabling customers to seamlessly park long-term capital gains while retaining eligibility for tax exemptions until reinvestment.
Enabling Tax-Efficient Capital Management
The scheme provides a secure and compliant avenue for customers to hold unutilised capital gains, allowing them the flexibility to plan reinvestments within the timelines prescribed under tax laws. By bridging the gap between asset sale and reinvestment, the offering addresses a critical need for taxpayers seeking to optimise capital gains liabilities.
Backed By Regulatory Approval
The launch follows authorisation from the Central Board of Direct Taxes (CBDT), which has permitted the bank to accept deposits under the Capital Gains Account Scheme, 1988. This approval positions IndusInd Bank among authorised institutions facilitating such tax-efficient financial solutions.
Wide Coverage Of Eligible Assets
Under the scheme, the bank will accept deposits from unutilised proceeds arising from the sale of a broad range of capital assets. These include residential properties, flats, farmhouses, agricultural land, urban land, and properties located in Special Economic Zones (SEZs), ensuring comprehensive coverage for investors across asset classes.
Dual Account Options for Flexibility and Returns
IndusInd Bank is offering two distinct account variants under CGAS to cater to diverse customer needs. The Type A account functions as a savings account, allowing flexible deposits and withdrawals with no minimum balance requirement while earning applicable savings interest.
In contrast, the Type B account operates as a term deposit, requiring a minimum deposit of ₹10,000 and offering higher returns aligned with specific reinvestment timelines, thereby providing an option for customers seeking better yield on parked funds.
Targeting A Broad Customer Base
The scheme will be available at authorised non-rural branches of IndusInd Bank and is open to a wide set of eligible customers. This includes resident individuals, Hindu Undivided Families (HUFs), non-individual entities, and Non-Resident Indians (NRIs).