Karnataka Bank has launched the Capital Gains Account Scheme (CGAS), a banking solution designed to help customers deposit unutilized capital gains while planning eligible reinvestments under the provisions of the Income-tax Act.
The scheme is targeted at taxpayers who have earned capital gains from the transfer of eligible capital assets but are unable to complete the prescribed reinvestment within the stipulated timeframe. By depositing the eligible capital gains amount into a CGAS account within the prescribed period, customers can avail themselves of applicable tax benefits, subject to compliance with relevant provisions of the Income-tax Act and associated regulations.
Karnataka Bank is among the authorized banks permitted to offer the Capital Gains Account Scheme, following the Government's decision to expand availability through additional banking partners.
The scheme offers two account types:
- Capital Gains Account-A (Savings Deposit Account) for flexible deposits and withdrawals
- Capital Gains Account-B (Term Deposit Account) for longer-term parking of funds
The scheme serves as a solution for customers planning eligible reinvestments, including the purchase or construction of residential property and other qualifying investments as permitted under applicable provisions of the Income-tax Act.
Sri. Raghavendra S Bhat, Managing Director & CEO, commented: "At Karnataka Bank, we are committed to delivering customer-centric banking solutions that empower customers to manage their finances with confidence. The launch of the Capital Gains Account Scheme reflects our continued focus on providing convenient and compliant solutions that support effective tax planning and investment decisions."
Customers interested in availing the scheme may visit their nearest Karnataka Bank branch for detailed information regarding account opening procedures, documentation requirements, operational guidelines, and applicable terms and conditions.
Disclosure Signatories
- Sham Kanathila, Company Secretary & Compliance Officer (regulatory filing)
- Pallavi T.S, Chief Manager & Public Relations Officer (press release)