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.
