HDFC Bank has received government authorisation to offer deposits under the Capital Gains Accounts Scheme (CGAS), 1988. According to reports from The Economic Times, the bank announced this development on Wednesday, marking a significant expansion of its tax-related banking services.
The CGAS facility allows taxpayers to hold their unused capital gains for a maximum of three years in bank accounts. As reported by The Economic Times, taxpayers who are unable to finalise their re-investment before the income tax filing deadline can now open savings accounts and fixed deposits with the bank across all urban and semi-urban branches (excluding rural branches). The scheme provides tax exemption benefits while allowing depositors to earn interest on their deposits for the maximum three-year period. HDFC Bank has now launched the facility through its urban and semi-urban branches, offering customers two deposit options — Type A savings accounts and Type B fixed deposits.
The savings account comes with a zero-balance requirement and no transaction charges, providing flexibility for customers. Both account categories offer quarterly interest payouts, ensuring regular income generation for depositors. Customers can transfer funds through NEFT, RTGS, IMPS, UPI and other banking channels, ensuring seamless accessibility. Account holders will receive view-only access through HDFC Bank's mobile banking and net banking platforms. Savings account customers will receive passbooks, while fixed deposit holders will get deposit advice for tracking their investments, as reported by The Economic Times.
According to the applicable section of the Income-Tax Act, taxpayers will be able to avail tax exemption and earn interest on their deposits for the maximum three-year period. The scheme covers capital gains arising from residential properties, agricultural land and other qualifying capital assets. This scheme provides a practical solution for taxpayers who need additional time to finalise their capital gains re-investment decisions while maintaining compliance with tax regulations, as reported by The Economic Times.
