Capital Gains Account Scheme —
Park Gains Before the ITR Deadline
The CGAS deposit that keeps your Section 54, 54F and 54B exemption alive when the new house is not bought by the return due date — Type A vs Type B, deadlines, eligible banks and withdrawal.
If you earned long-term capital gains (from a house, land or other asset) but cannot reinvest in the new asset by your ITR due date, you must deposit the unspent gains in a Capital Gains Account Scheme (CGAS) account before that date to keep your Section 54, 54F or 54B exemption. It is a designated account at a nationalised bank, in Type A (savings) or Type B (term deposit). Interest is taxable, and any amount left unused after the reinvestment window becomes taxable capital gain in that later year.
Section 54/54F exemptions give you 2 years to buy or 3 years to construct the new house — far longer than the July return deadline. CGAS bridges the gap: you park the money now, claim the exemption in this year's ITR, and draw it down as you pay the builder or seller. Without the deposit, the unspent gain is taxed in the year of sale even if you reinvest later.
Which Exemptions Allow a CGAS Deposit
CGAS supports the reinvestment exemptions below. See the underlying rules on Section 54, Section 54F and Section 54B. Bonds under Section 54EC have only a 6-month window, so CGAS is rarely used there.
| Section | Asset sold | Reinvest in | Window | CGAS deposit by |
|---|---|---|---|---|
| 54 | Residential house | New residential house | 2 yr buy / 3 yr build | ITR due date |
| 54F | Any long-term asset (not a house) | One residential house | 2 yr buy / 3 yr build | ITR due date |
| 54B | Agricultural land | New agricultural land | 2 years | ITR due date |
| 54D | Industrial land / building (compulsory acquisition) | New industrial land / building | 3 years | ITR due date |
| 54G / 54GA | Assets of a shifting industrial undertaking | New plant, machinery, land, building | 3 years | ITR due date |
Since AY 2024-25 the CGAS deposit that counts for Section 54 / 54F exemption is capped at Rs 10 crore. Deposit must be made before the due date u/s 139(1) for filing the return.
CGAS Type A vs Type B
A CGAS account comes in two forms. Pick based on whether you will make several payments (a builder) or one lump-sum purchase.
Type A — Savings account
- Operates like an ordinary savings account
- Withdraw as and when you need funds
- Lower interest (savings-account rate)
- Best for under-construction property with staged payments
Type B — Term deposit
- Fixed-deposit style for a chosen term
- Higher interest than Type A
- Convert to Type A before withdrawing
- Best for a single future purchase of a ready property
Interest credited on both Type A and Type B is taxable as income from other sources in the year it accrues — it does not become part of the exempt capital gain. TDS provisions apply as for any bank interest. Do not assume the account is fully tax-free just because the capital gain is exempt.
Not sure whether to use Type A or Type B for your situation?
Ask a Tax Expert →CGAS Deadlines — Deposit and Utilisation
Two separate timelines matter: when you must deposit, and how long you can hold the money before it is treated as unused.
Suppose you sold a plot on 10 May 2025 with a Rs 40 lakh long-term gain and plan a new house under Section 54F, but have not bought it by the return due date.
With CGAS deposit
Without CGAS
If the reinvestment window (2 years to buy, 3 years to construct) expires with money still lying in the CGAS account, the unutilised amount is taxed as capital gain in the year the window ends — at the rate applicable to that original gain. Use the funds only for the notified purpose; withdrawals must be applied within 60 days.
How to Open, Withdraw and Close a CGAS Account
CGAS accounts are offered by nationalised and specified scheduled banks (SBI, PNB, Bank of Baroda, Canara, and others). Post offices are not eligible. Operations run on prescribed forms.
| Action | Form | What it does |
|---|---|---|
| Open the account | Form A | Apply to open Type A or Type B; declare the section and asset |
| Withdraw funds | Form C / D | First withdrawal via Form C; utilise within 60 days or redeposit |
| Convert Type B | Form B | Convert a term deposit to savings before drawing it down |
| Close the account | Form G | Close with the Assessing Officer's approval once reinvestment is done |
Keep the sale deed, computation and CGAS passbook — you must show utilisation if the return is scrutinised.
- PAN and Aadhaar of the depositor
- Proof of the capital asset sold (sale deed)
- Capital-gain computation for the exempt section
- Form A to open the CGAS account
- Deposit made before the ITR due date
- Section and asset declared to the bank
- Withdrawals applied within 60 days
- Reinvestment completed within 2 / 3 years
- Form G closure after purchase / construction
- Interest disclosed as other-source income
Use CGAS if
- You have unspent gains at the ITR due date
- You will buy or build within the 2-3 year window
- You want to lock in the 54 / 54F / 54B exemption now
Skip or reconsider if
- You have already completed the reinvestment
- Your gain is small and tax on it is negligible
- You are unsure you will reinvest — unused funds are taxed later
Sold a house, plot or shares and need the exemption done right?
Get Capital-Gains Filing Help →CGAS — Frequently Asked Questions
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Preserve Your Capital-Gains Exemption — Done Right
Sold a house, plot or shares and not reinvested yet? Our CA-led team computes the gain, times the CGAS deposit before your ITR due date, claims the 54/54F/54B exemption and files accurately — 100% online, across India.