New Delhi: Karnataka Bank has launched the Capital Gains Account Scheme (CGAS), offering customers a convenient and compliant banking solution to deposit unutilized capital gains while planning eligible reinvestments under the provisions of the Income-tax Act.
The Capital Gains Account Scheme is designed for 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. By depositing the eligible capital gains amount into a CGAS account within the prescribed period, customers can avail themselves of applicable tax benefits, subject to compliance with the relevant provisions of the Income-tax Act and associated regulations.
Karnataka Bank is among the authorized banks permitted to offer the Capital Gains Account Scheme. The Government’s decision to expand the availability of CGAS through additional banking partners has significantly improved . accessibility and convenience for taxpayers across the country seeking to manage their capital gains efficiently through authorized banking channels.
Under the scheme, customers can open:
• Capital Gains Account-A (Savings Deposit Account) for flexible deposits and withdrawals, and
·• Capital Gains Account-B (Term Deposit Account) for longer-term parking of funds,
The scheme serves as an effective solution for customers planning eligible reinvestments, including the purchase or construction of residential property and other qualifying investments, as permitted under the applicable provisions of the Income-tax Act.
Raghavendra S Bhat, Managing Director & CEO said: “At Karnataka Bank, we are committed to delivering customer-centric banking solutions that empower customers to manage their finances with confidence. 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.”
