Karur Vysya Bank has recently announced the launch of its Capital Gains Account Scheme (CGAS) after receiving official authorisation from the Ministry of Finance, Government of India. The service is available with immediate effect across the bank’s branch network, excluding rural markets.

The Capital Gains Account is designed for individuals and Hindu Undivided Families who have sold assets such as property, land or securities and require a secure mechanism to park proceeds while remaining eligible for capital gains tax exemptions under the Income Tax Act, 1961. The scheme allows customers to earn interest on parked funds while providing flexibility to complete reinvestment within the prescribed timeframe.

Under Indian tax regulations, capital gains are exempt if reinvested within a specified period, though identifying suitable assets often extends beyond tax filing deadlines. The CGAS serves as a compliant interim solution, enabling customers to avoid rushed investment decisions while maintaining regulatory compliance.

The scheme is available at KVB’s non-rural branches and supports fund transfers through UPI, NEFT and RTGS. Customers can opt for Type A accounts, structured as savings accounts for phased withdrawals, or Type B accounts, structured as term deposits with cumulative or non-cumulative interest options, in line with applicable regulatory requirements.