Bank Details Mandatory for Capital Gain Accounts Scheme (CGAS) in ITRs of AY 2024-25

The Capital Gain Account Scheme (CGAS) in India is a tax saving investment provision offered by the Income Tax Act, 1961, to enable taxpayers to save on capital gains tax arising from the sale of assets like property or securities for a particular timeframe. It enables taxpayers to deposit all their capital gain proceeds from sale of specified capital assets into a separate bank account which id dedicatedly opened with the purpose of parking such capital gain money. 

While filing the income tax return, there are certain mandatory reporting of information relating to capital gains income such as the amount of Capital Gain and its utilisation. Any deposit in CGAS is to be reported while filing Schedule of Capital Gain in ITR. However, if any income is earned on such Capital Gain deposited in CGAS account then such interest will be taxable under the head of “Income from other sources”.

From AY 2024-25 another additional mandatory reporting requirement with respect to CGAS is in the form of Declaration of Bank details in the ITR.

What kind of Bank details are to be given for CGAS reporting in ITR?
To make the accurate reporting of amount deposited in CGAS account, following Bank details are mandatory:

  • Amount deposited in CGAS account
  • Date of depositing the amount in CGAS account
  • Bank Account number
  • Bank IFSC number

Where to report this information in ITR?
In ITR 2, Schedule CG of Capital Gain will have the fields to be reported for Bank details of CGAS account.
For deduction claimed with amounts deposited in CGAS account needs to be reported along with date of deposit, account number and IFSC code of Bank account.
Accordingly, the amount of deduction available to taxpayer will be calculated based on the mentioned details after due verification.

Following schedules are reflected in ITR2 for mentioning such Bank account details:

By providing bank details related to the Capital Gains Account Scheme, taxpayers enable tax authorities to verify the transactions associated with capital gains accurately. This verification process ensures transparency and compliance with tax regulations. Mandatory reporting of CGAS bank details enables tax authorities to monitor compliance with the rules and regulations governing the Capital Gains Account Scheme. Accurate reporting of CGAS bank details in income tax returns helps tax authorities assess tax liabilities correctly. By reconciling the information provided by taxpayers with the data available from financial institutions, tax authorities can ensure the accuracy of tax assessments and minimize errors or discrepancies. Overall, the mandatory reporting of bank details related to the Capital Gains Account Scheme in income tax returns serves to promote transparency, prevent tax evasion, and facilitate effective tax administration and compliance monitoring. Tax authorities will have a strong hold on such compliance requirements.

About Author:

CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.

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