HDFC Bank Launches Capital Gains Deposit Scheme, Taxpayers Can Earn Interest & Claim Tax Exemption On Unused Gains

Mumbai: HDFC Bank has received government authorisation to accept deposits under the Capital Gains Accounts Scheme (CGAS), 1988, allowing eligible taxpayers to earn interest while seeking tax exemption on capital gains that have not yet been reinvested.

The facility will help individuals who sell property or other eligible assets but cannot reinvest their capital gains before the income tax return filing deadline.

Tax Saving

Under CGAS, taxpayers can deposit unutilised capital gains in designated bank accounts and claim exemptions under applicable provisions of the Income-Tax Act, subject to prescribed conditions.

The scheme allows funds to remain deposited for up to three years, depending on the relevant tax provision.

HDFC Bank will offer the facility through its urban and semi-urban branches. Rural branches are excluded.

Account Options

Customers can choose between 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.

Both account categories offer quarterly interest payouts, according to the bank.

Customers can transfer funds through NEFT, RTGS, IMPS, UPI and other banking channels.

Digital Access

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.

The bank said these facilities would simplify the management of unutilised capital gains.

Eligible Assets

The scheme covers capital gains arising from residential properties, agricultural land and other qualifying capital assets.

It also includes certain industrial assets transferred through compulsory acquisition or relocated from urban areas to non-urban locations or Special Economic Zones.

Currently, the facility is available to resident Indians.

Bank Statement

Sunali Rohra, Head of Government and Institutional Liabilities and other banking channels at HDFC Bank, welcomed the government's authorisation.

She said the initiative would allow customers to earn interest and avail tax exemptions while securely depositing their unutilised capital gains.

The actual exemption remains subject to applicable tax rules and reinvestment conditions.