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.

The Capital Gains Account Scheme allows taxpayers to temporarily deposit capital gains before investing in a new property. To understand when CGAS is required, see our complete Capital Gains Tax on Property in India guide.

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, GK, Nehru place & 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

• NRIs selling residential property

• 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.

(page here)

Book Consultation Before Filing ITR

If you have recently sold property and are unsure about CGAS requirements, consult before filing your return.

The Capital Gains Account Scheme allows taxpayers to temporarily deposit capital gains before investing in a new property. To understand when CGAS is required, see our complete Capital Gains Tax on Property in India guide.

Related Capital Gains Guides

• Capital Gains Calculation on Property

• Short Term vs Long Term Capital Gains

• Indexed Cost of Acquisition

• Cost Inflation Index Guide

• Section 50C Stamp Duty Rule

• Section 54 / 54F Exemption

• Capital Gains Account Scheme

• Capital Gains on Joint Property Sale

• Capital Gains on Gifted Property

• Capital Gains on Inherited Property

• Capital Gains on Property Purchased Before 2001

• Capital Gains Indexation Calculator

📞 9266032777
CA Shiwali – Capital Gains & Property Tax Specialist
South Delhi