The Ministry of Finance has issued a fresh notification introducing the Capital Gains Accounts (Second Amendment) Scheme, 2025, marking the most significant upgrade to the Capital Gains Account Scheme (CGAS), 1988 since its last revision in 2012. The amendment, notified on 19 November 2025, expands the scheme's scope and fully integrates digital payment and electronic compliance mechanisms.
The update enhances taxpayer convenience, modernises operational processes, and strengthens digital record-keeping for capital gains tax exemption claims under Sections 54, 54B, 54D, 54F, 54G, 54GA and 54GB of the Income-tax Act.
Key Updates Under the Second Amendment Scheme, 2025
1. Digital Payments Now Fully Allowed for CGAS Transactions
The amended scheme officially recognises "electronic mode" for deposits, permitting payments through:
- Credit & Debit Cards
- Net Banking
- IMPS
- UPI
- RTGS
- NEFT
- BHIM Aadhaar Pay
This brings CGAS in line with modern banking practices and eliminates the earlier dependence on cheques and demand drafts.
2. Digital Statements Accepted in Place of Physical Passbooks
The government has allowed electronic statements of account to be treated at par with traditional passbooks, simplifying verification and documentation processes.
3. Effective Date of Deposit Clarified for Digital Transactions
Deposits made through electronic mode will be considered effective from the date they are received by the deposit office, ensuring accurate timelines for capital gains exemption claims.
4. Electronic Closure of CGAS Accounts Mandatory From April 1, 2027
From 1 April 2027, taxpayers can close their CGAS accounts only through electronic filing, authenticated via either:
- Digital Signature Certificate (DSC), or
- Electronic Verification Code (EVC)
This is a major shift toward complete digitisation of CGAS life-cycle management.
5. Updated Forms & Procedures
Forms A, C, G, and H have been revised to include fields for electronic payments and electronic verification. The Income Tax Systems Directorate will prescribe:
- Filing procedures
- Data structures
- Security & archival protocols
Why This Amendment Matters
- Modernises a 37-year-old scheme by bringing it into the digital era.
- Reduces paperwork, manual errors, and delays.
- Improves compliance for taxpayers claiming capital gains exemptions.
- Streamlines coordination between deposit offices, taxpayers, and assessing officers.
Official copy of the notification has been attached
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