CBDT Expands Capital Gains Account Scheme: 19 More Banks Authorised Nationwide

In a significant move aimed at improving taxpayer convenience and widening access to Capital Gains Account Scheme (CGAS) services, the Central Board of Direct Taxes (CBDT) has authorised all non-rural branches of 19 major banks to receive deposits and maintain accounts under the Capital Gains Account Scheme, 1988.The notification was published in the Gazette of India on November 19, 2025.

The updated authorisation expands the network of banks where taxpayers can open and operate CGAS accounts-an essential mechanism for individuals wishing to claim tax exemptions under sections 54, 54B, 54D, 54F, 54G, and 54GB of the Income Tax Act.

What the New Notification Says

According to the notification issued under clause (e) of paragraph 2 of the CGAS Rules, the Central Government has allowed all non-rural branches of the following banks to operate CGAS accounts:

Newly Authorised Banks

1. HDFC Bank Ltd
2. ICICI Bank Ltd
3. Axis Bank Ltd
4. City Union Bank Ltd
5. DCB Bank Ltd
6. Federal Bank Ltd
7. IDFC FIRST Bank Ltd
8. IndusInd Bank Ltd
9. Jammu & Kashmir Bank Ltd
10. Karnataka Bank Ltd
11. Karur Vysya Bank Ltd
12. Kotak Mahindra Bank Ltd
13. RBL Bank Ltd
14. South Indian Bank Ltd
15. Yes Bank Ltd
16. Dhanlaxmi Bank Ltd
17. Bandhan Bank Ltd
18. CSB Bank Ltd
19. Tamilnad Mercantile Bank Ltd

The Government clarified that rural branches-defined as branches located in centres with less than 10,000 population as per the 2011 Census-are not covered under this authorisation.

Why This Matters for Taxpayers

This move significantly expands access to CGAS services, benefiting property sellers who need to temporarily park capital gains to claim tax exemptions. Key advantages include:

• Wider branch availability across metro, urban, and semi-urban locations
• Improved ease of compliance for taxpayers planning to reinvest capital gains
• Reduced dependence on a limited set of banks previously authorised under earlier notifications (1988 & 2012)

Tax professionals say this expansion will streamline the process for thousands of taxpayers who often face accessibility issues while opening or operating CGAS accounts.

Official copy of the notification has been attached