New 2025 Scheme Simplifies Capital Gains Tax Relief

The government has made it much easier to claim tax relief on capital gains. The Ministry of Finance’s Capital Gains Accounts (Second Amendment) Scheme, 2025, announced on November 19, 2025, is the biggest change to the 1988 scheme in over a decade. The new rules completely digitalize the process for taxpayers who deposit their capital gains to claim tax exemptions (under sections 54, 54B,54D,54F,54GA and 54GB of the income tax act promising faster transactions and far less paperwork..

Major changes under the Second Amendment Scheme 2025

The  second amendment scheme 2025 introduces game-changing features that directly enhance convenience, expedite transactions, and widen accessibility:

•   Digital mode of payment is now fully accepted for CGAS transactions:

       The traditional reliance on cheques and demand drafts for depositing unutilised capital gains is over. The changed scheme formally embraces a full suite of electronic payment modes, including UPI, NEFT, RTGS, Credit/Debit cards, and Net Banking. This change ensures instant deposits, eliminates clearance delays, and provides clarity on the effective date of the deposit for claiming tax exemption.

• Wider Bank Network:

    Accessibility has been significantly boosted. The definition of a ‘Deposit Office’ is no longer limited to select public sector banks. It has been expanded to authorise 19 additional private sector banks to open and manage CGAS accounts, giving taxpayers across India and non-resident Indians (NRIs) more options and potentially better service.

• Paperless Records Accepted: 

   With the integration of modern banking, the new rules formally place electronic statements of account on par with physical passbooks. This simplification supports digital record-keeping for operations such as withdrawals, verification, and transfers.

• Online Closure Made Mandatory (From 2027): 

    Addressing a long-standing compliance pain point, the closure of CGAS accounts will become a seamless, fully electronic process starting April 1, 2027. Taxpayers will use a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). This is a major transformation toward the complete digitisation of the CGAS life-cycle management.

• Latest Forms & Procedure

    Forms A, C, G, and H have been updated to include sections for digital payments and electronic verification. The Income Tax Systems Directorate will define the procedures for filing, required data formats, and protocols for security and record-keeping.

Conclusion

The 2025 Amendment Scheme is a pivotal move by the government to dismantle bureaucratic hurdles in tax compliance. By fully digitising payments and documentation and mandating electronic account closure in the near future, the new framework promises a more transparent, predictable, and remarkably user-friendly process for managing capital gains tax exemptions. This digital transformation is set to provide tangible relief and greater financial certainty to a broad spectrum of Indian taxpayers.