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
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.
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.
Further:
- 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.
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.
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.
Role of Income Tax (Systems) Directorate
The amendment assigns the Principal Director General of Income-tax (Systems) responsibility for:
- Prescribing procedures for Form G and Form H filing
- Forwarding digitally filed forms to jurisdictional Assessing Officers
- Specifying the standards for EVC generation
- Ensuring secure storage, archival, and retrieval of electronically submitted forms
Updates to Forms A and C
Forms under the Scheme have been updated to:
- Include section 54GA
- Provide fields for transactions made via electronic modes
- Insert new fields for RTGS/IMPS/NEFT transaction details under the deposit office section
Conclusion
The amendments mark a major step toward digitization, simplification, and improved taxpayer convenience in the operation of Capital Gains Accounts. By incorporating electronic modes of payment and streamlined digital processes, the Government seeks to promote a more transparent and efficient tax administration ecosystem.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/11/CBDT-Capital-Gains-Accounts-Second-Amendment-Scheme-2025.pdf
