Mangaluru, 29 August 2026: Karnataka Bank has launched the Capital Gains Account Scheme (CGAS) to help taxpayers manage capital gains arising from the sale or transfer of eligible capital assets and avail themselves of applicable tax benefits.
Scheme is particularly useful for taxpayers who earn capital gains but are unable to reinvest the amount within the prescribed period under the Income Tax Act. By depositing the unused capital gains in a CGAS account within the stipulated period, eligible taxpayers can avail themselves of the applicable tax benefits, subject to the provisions of the law. Karnataka Bank is among the banks authorised to offer the Capital Gains Account Scheme.
Two types of accounts
Customers can open two types of accounts under the scheme:
- Capital Gains Account-A: A savings deposit account that allows deposits and withdrawals as required, subject to applicable rules.
- Capital Gains Account-B: A term deposit account designed for keeping the funds for a longer period.
Funds deposited under CGAS can be used for eligible reinvestments permitted under the Income Tax Act, including the purchase or construction of a residential property, subject to the applicable conditions and timelines.
Raghavendra S. Bhat said the bank is committed to providing customers with convenient and compliant financial solutions. He said CGAS can support effective tax planning and investment decisions.
Customers interested in opening a CGAS account can contact their nearest Karnataka Bank branch for details regarding the account-opening process, required documents, operational rules and applicable conditions.
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