Tax Compliance Made Easier: Capital Gains Accounts Now Digital
Introduction:
The CBDT vide Notification No. 161/2025 dated November 19, 2025 has notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, introducing significant digital-enablement reforms to the Capital Gains Accounts Scheme (CGAS), 1988. The amendments have been issued under various provisions of section 54 and related sections of the Income-tax Act, 1961.
Key Highlights of the Amendment
1. Inclusion of Section 54GA
The Scheme now formally incorporates section 54GA, allowing depositors claiming exemption on account of shifting of industrial undertakings from urban areas to Special Economic Zones to use CGAS accounts.
2. Introduction of Electronic Modes of Payment
To promote ease of compliance and digital transactions, the Government has inserted a detailed definition of “electronic mode”, enabling deposits through:
Credit/Debit Cards
Net Banking
IMPS
UPI
RTGS
NEFT
BHIM Aadhaar Pay
All earlier references to “cheque or draft” have been expanded to include electronic mode of payment across application and deposit processes.
The effective date of deposit for exemption purposes will now be the date on which the electronic payment is received by the deposit office, subject to realization.
3. Digital Access to Account Statements
Depositors may now use electronic statements of account in place of physical passbooks for operations such as withdrawals, transfers, or account closure.
4. Mandatory Electronic Closure of Accounts from 1 April 2027
A significant reform mandates that closure of CGAS accounts shall only be executed electronically using digital signature or electronic verification code (EVC) starting 1 April 2027.
The copy of the order is as under:
