On 19-11-2025, the Ministry of Finance notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, marking a significant step toward digitization and modernization.
Key Highlights:
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This Amendment modifies the Capital Gains Accounts Scheme, 1988, aligning it with rapidly evolving digital payments ecosystem and strengthening compliance under the Income-tax Act, 1961.
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The revised Scheme now includes Section 54GA, which deals with capital gains arising from the shifting of industrial undertakings from urban areas to Special Economic Zones (SEZs), ensuring broader applicability for taxpayers seeking exemptions.
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This Amendment revises the definition of “Deposit Office”, which now includes:
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Branches of State Bank of India, its subsidiaries, and corresponding new banks under the Banking Companies Acts.
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Any banking company defined under the Banking Regulation Act, 1949, authorized by the Central Government to accept deposits under this scheme.
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The Amendment introduces “electronic mode” for deposits, allowing payments through:
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Credit/Debit Cards
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Net Banking
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IMPS, UPI
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RTGS, NEFT
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BHIM Aadhaar Pay
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This inclusion eliminates the earlier dependence on cheques and demand drafts, aligning the scheme with modern banking practices.
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Para 3 is modified to extend the scheme’s applicability to SEZ related exemptions.
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Amendments to Para 5 are stated as follows:
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Sub-paragraph (4): Deposits can now be made “by electronic mode” in addition to cheque or draft.
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Sub-paragraph (6): Clarifies that the effective date of deposit is the date the cheque, draft, or electronic payment is received by the deposit office, subject to realization.
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Sub-paragraph (7): Adds that the date of receipt of deposit by electronic mode is also valid, ensuring parity between traditional and digital payment methods.
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Para 7 now permits taxpayers to use electronic statements of account instead of physical passbooks, reducing paperwork and improving accessibility.
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In Para 9, subparagraphs (1) and (2) now recognize electronic statements of account alongside traditional passbooks, while subparagraph (4) permits withdrawals through electronic mode, integrating digital records into the process.
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Para 13 introduces digital closure of accounts:
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From 1-4-2027, closure requests will be furnished electronically using digital signature or electronic verification code (EVC).
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DGIT (Systems) will define procedures for filing Forms G & H, ensure secure data handling, and implement archival policies.
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