Private sector lender Karnataka Bank has launched the Capital Gains Account Scheme (CGAS), providing customers with a banking facility to deposit unutilised capital gains while planning eligible reinvestments under the provisions of the Income-tax Act.
The scheme is aimed at taxpayers who have earned capital gains from the transfer of eligible capital assets but are unable to complete the prescribed reinvestment within the stipulated timeframe.
“The launch of the Capital Gains Account Scheme reflects our continued focus on providing convenient and compliant solutions that support effective tax planning and investment decisions,” said Karnataka Bank, Managing Director & CEO, Raghavendra S Bhat.
Two account options available
Under CGAS, eligible customers can deposit the required capital gains amount within the prescribed period to avail themselves of applicable tax benefits, subject to compliance with the Income-tax Act and related regulations.
Customers can open Capital Gains Account-A, a savings deposit account that permits flexible deposits and withdrawals, or Capital Gains Account-B, a term deposit account designed for parking funds for a longer period.
Scheme supports eligible reinvestments
The facility can be used by customers planning eligible reinvestments, including the purchase or construction of residential property and other qualifying investments.
Karnataka Bank is among the authorised banks permitted to offer the Capital Gains Account Scheme. The expansion of CGAS availability through additional banking partners has improved access to the facility for taxpayers seeking to manage capital gains through authorised banking channels.
The scheme provides taxpayers with additional time to deploy eligible capital gains towards prescribed investments while maintaining compliance with applicable tax provisions.