The Ministry of Finance has officially notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, marking a pivotal step toward modernizing tax compliance and introducing sweeping digital capabilities. This Amendment fundamentally modifies the 1988 Scheme, aligning it with the modern digital payments ecosystem and broadening its scope for taxpayers.
The core message is clear: The Capital Gains Accounts Scheme Digital transition is here, with mandatory online closure set for 2027.
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Key Changes Driving the Digital Transformation
The revised Scheme focuses on three main areas: digital payment integration, expanded applicability, and modernized account management.
1. 💳 Digital Payment Integration
The dependence on physical instruments like cheques and demand drafts is eliminated by the introduction of the “electronic mode” for deposits and withdrawals. This is the most significant change for day-to-day operations:
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Payment Methods: Deposits can now be made instantly using Credit/Debit Cards, Net Banking, IMPS, UPI, RTGS, NEFT, and BHIM Aadhaar Pay.
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Effective Date: The date of deposit is now clarified to include the date the electronic payment is received by the deposit office, ensuring parity with traditional methods.
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Digital Withdrawals: Taxpayers are now permitted to make withdrawals through electronic mode, streamlining the entire fund access process
2. 🌍 Expanded Applicability to SEZs
The revised Scheme now includes Section 54GA of the Income-tax Act, 1961. This crucial addition ensures that the scheme’s benefits extend to capital gains arising from the shifting of industrial undertakings from urban areas to Special Economic Zones (SEZs). This broadens applicability for businesses seeking tax exemptions.
3. 🏦 Modernized Account Management and Banking Access
The amendments make the scheme more accessible and paperless:
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“Deposit Office” Redefined: The definition is broadened to include branches of State Bank of India, its subsidiaries, and corresponding new banks, as well as any banking company authorized by the Central Government under the Banking Regulation Act, 1949.
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Paperless Records: Taxpayers can now use electronic statements of account in lieu of physical passbooks, drastically reducing paperwork and improving accessibility.
🗓️ Mandatory Digital Closure Deadline: April 2027
The final and most critical compliance change is the mandate for digital account closure:
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Effective Date: From April 1, 2027, all requests for account closure must be furnished electronically.
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Authentication: The electronic submission must be secured using a digital signature or the Electronic Verification Code (EVC).
The DGIT (Systems) will be responsible for defining the exact procedures for filing the closure Forms G and H, implementing secure data handling, and establishing archival policies. This definitive deadline underscores the government’s commitment to making the Capital Gains Accounts Scheme Digital and fully paperless within the next few years.
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