According to a Finance Ministry notification, HDFC Bank, ICICI Bank, Axis Bank Ltd, City Union Bank Ltd, DCB Bank Ltd, Federal Bank Ltd, IDFC FIRST Bank, IndusInd Bank, Jammu and Kashmir Bank, Karnataka Bank Ltd, Karur Vysya Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, Yes Bank Ltd, Dhanlaxmi Bank, Bandhan Bank, CSB Bank and, Tamilnad Mercantile Bank have been authorised to accept deposits under Capital Gains Account Scheme
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AJAY VERMA
The Finance Ministry has permitted 19 private sector banks including ICICI Bank and HDFC Bank to accept Capital Gains Account Scheme. So far, such accounts could only be opened with public sector banks and IDBI Bank, except those in rural area.
According to a Finance Ministry notification, HDFC Bank, ICICI Bank, Axis Bank Ltd, City Union Bank Ltd, DCB Bank Ltd, Federal Bank Ltd, IDFC FIRST Bank, IndusInd Bank, Jammu and Kashmir Bank, Karnataka Bank Ltd, Karur Vysya Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, Yes Bank Ltd, Dhanlaxmi Bank, Bandhan Bank, CSB Bank and, Tamilnad Mercantile Bank have been authorised to accept deposits under Capital Gains Account Scheme. Restriction on rural branches are to continue here too. A rural branch means a branch which is situated and is functioning at a centre where the population, according to 2011 census, is less than 10,000.
Another notification added section 54GA under the Capital Gains Account Scheme. This means capital gains arising from transfer of assets on shifting of industrial undertaking from the urban area to any SEZ can also be deposited.
Section 54 provides exemption from paying LTCG (Long Term Capital Gains) tax on the sale of plot or an old house if one acquires a new house or specified assets either one year before or within two years of selling your old one. If one intends to build a new house, she/he must do so within three years of selling within old one. Now, during the intermediary period (time between selling and re investing), one can park the money with special deposit scheme.
There will be two types of deposit accounts, namely Deposit account-A; and Deposit account-B. The deposit made under account-A will be in the form of savings deposit and withdrawals under this account can be made from time to time by the depositor. Interest rate as applicable on Saving Accounts will be given on such an account.
The deposit made under account-B shall be in the form of term deposit with an option to the depositor to keep the deposit as cumulative or non-cumulative deposit. Withdrawals under this account can be made only after the expiry of the period for which the deposit under this account has been made and accepted. Such deposits may be made in one lump sum or in instalments at any time on or before the due date of furnishing the return of income under sub-section (1) of section 139 of the Income Tax Act as is applicable in the case of the depositor.
What is Capital Gain Term Deposit account?
The Capital Gain Term Deposit account can be opened with a minimum deposit of ₹1,000 and thereafter in multiples of ₹1 with no ceiling of maximum amount. Maximum tenor will not exceed 2 to 3 years from date of transfer of original asset. Minimum Tenor for maturity option would be 7 days and for income option would be 6 months. After tenor FD shall be auto closed.
In case of premature withdrawal, 1 per cent penal interest will be charged No loan facility against this deposit is available. The term deposit can neither be accepted as margin money for non-fund based nor as collateral to any type of fund-based facilities.
Published on November 20, 2025
