Federal
Bank Capital Gains Account Scheme CGAS
16th March
2026, Mumbai: Federal
Bank today announced the launch of the Capital Gains Account Scheme (CGAS),
reinforcing its commitment to supporting customers in managing capital gains
efficiently and in compliance with regulatory requirements.
The Bank has been authorised to accept
deposits and maintain accounts under the Capital Gains Account Scheme, 1988,
as per the notification issued by the Ministry of Finance on 19
November 2025. This authorisation marks a significant milestone in
Federal Bank’s efforts to provide structured and compliant solutions for
taxpayers.
Commenting on the launch, Joy P V,
EVP & Country Head – Retail Liability & Fee Products said, “The
Capital Gains Account Scheme has been introduced to make investing more
convenient for customers, allowing them to earn interest by keeping their funds
in a Capital Gains Account until the next investment, as permitted under CBDT/
Income Tax timelines.”
As part of this initiative, Federal
Bank has introduced two dedicated products under CGAS, effective 13 March
2026:
• Fed
Capital Gains Savings Account (Type A)
• Fed
Capital Gains Deposit Account (Type B)
Initially, the scheme will be available
to Resident Individuals, Hindu Undivided Families (HUFs), Minors, and Non
Resident Indian (NRI) customers. The Capital Gains Account Scheme enables
taxpayers to temporarily park their capital gains when immediate investment in
specified assets is not feasible, helping them claim exemptions under
applicable sections prescribed by the CBDT/ Income Tax Department.
Key
Features of the Account Scheme
• Capital Gains Savings Account
(Type A): Designed for phased or periodic withdrawals, making it
suitable for step by step execution of investment plans or projects.
• Capital Gains Deposit Account
(Type B): A term deposit option with maturity aligned to the
customer’s investment timeline, supporting disciplined and goal oriented
financial planning.
• Earn While You Wait: Customers
can earn attractive interest rates on both savings and term deposit options, allowing
their capital to grow securely while planning reinvestment.
• Simplified Tax Compliance: The
scheme facilitates savings on capital gains tax under applicable provisions of
the Income Tax Act.
The Account Scheme is now available for
new and existing customers across all Federal Bank branches, except rural
branches.
About
Federal Bank
Federal Bank (NSE: FEDERALBNK) is one
of India’s leading private sector banks, with a legacy spanning nine decades
and a clear focus on long-term value creation. As on 31 December 2025, the
Bank’s total business mix (deposits and advances) stood at ₹5.53 lakh crore.
With a strong nationwide presence of
over 1,600 banking outlets complemented by robust digital capabilities, Federal
Bank serves millions of customers through an integrated physical and digital
network. The Bank maintains an international connect through its Representative
Offices in Dubai and Abu Dhabi, which serve as key touchpoints for Non-Resident
Indian customers in the UAE. It also operates an IFSC Banking Unit (IBU) at
GIFT City, becoming part of India’s evolving global financial ecosystem.
Anchored in its core values of trust,
prudence, and customer centricity, Federal Bank continues to evolve through
disciplined execution and a clear, contemporary approach to banking.
