Capital Gains Account Scheme (CGAS) – Rules, Deadlines & Compliance Guide (2026)
Capital Gains Account Scheme (CGAS) – Rules, Deadlines & Compliance Guide (2026)
If you have sold property and plan to claim exemption under Section 54 or 54F, you may need to deposit unutilized capital gains in the Capital Gains Account Scheme (CGAS) before filing your Income Tax Return.
Missing this step can result in loss of exemption and higher tax liability.
At CA Shiwali, we assist property sellers across South Delhi in proper CGAS compliance and capital gains planning.
📞 Call: 9266032777
📍 Serving Saket, Hauz Khas, GK, Malviya Nagar & nearby areas
What is Capital Gains Account Scheme (CGAS)?
CGAS is a special deposit scheme that allows taxpayers to temporarily park unutilized capital gains if they have not yet reinvested in property within the prescribed time.
It helps preserve eligibility under:
Section 54 (Sale of residential property)
Section 54F (Sale of other capital asset)
When is CGAS Deposit Required?
CGAS deposit is required if:
You sold property
You intend to claim Section 54 / 54F exemption
You have not fully reinvested the gains
The ITR filing due date is approaching
The deposit must be made before filing your return (generally before 31 July of assessment year unless extended).
Types of CGAS Accounts
There are two types:
Type A – Savings Deposit
Works like a savings account
Flexible withdrawals
Type B – Term Deposit
Fixed deposit style
Higher interest
Premature withdrawal rules apply
Choice depends on reinvestment timeline.
Example – CGAS Compliance
Property sold: March 2026
Capital gain: ₹60 lakh
Reinvested by July 2026: ₹25 lakh
Unutilized: ₹35 lakh
To preserve Section 54 exemption, ₹35 lakh must be deposited in CGAS before filing ITR.
Failure to deposit may result in exemption denial.
What Happens If You Miss CGAS Deadline?
If capital gains are not deposited before return filing:
Section 54 / 54F exemption may be disallowed
Full capital gains may become taxable
Interest liability may apply
This is one of the most common mistakes in property tax planning.
Withdrawal Rules from CGAS
Withdrawals must be used only for specified reinvestment purpose
Proper documentation must be maintained
Unused balance after 3 years may become taxable
Careful monitoring is required.
Common Mistakes in CGAS Compliance
❌ Assuming reinvestment period alone is sufficient
❌ Ignoring ITR filing deadline
❌ Depositing incorrect amount
❌ Using funds for non-specified purposes
Professional advisory before filing return is advisable.
Who Should Consult Before CGAS Deposit?
Property sellers claiming Section 54
Individuals reinvesting in under-construction property
High-value property transactions
Capital Gains & Property Tax Advisory in South Delhi
For complete property tax planning including Section 54, Section 50C, NRI TDS and CGAS compliance, read our detailed Capital Gains & Property Advisory Guide.
Book Consultation Before Filing ITR
If you have recently sold property and are unsure about CGAS requirements, consult before filing your return.
📞 9266032777
CA Shiwali – Capital Gains & Property Tax Specialist
South Delhi