Good news: Soon Capital Gains Account Scheme accounts can be closed online; Here’s how property sellers can benefit

Core Insights - The Central Board of Direct Taxes (CBDT) has announced that from April 1, 2027, the Capital Gains Account Scheme (CGAS) will allow online closure of accounts, streamlining the process for property sellers who need to withdraw funds due to not finding a new property to invest in [11][12] - The new online mechanism aims to eliminate the previous requirement for physical applications, which was time-consuming and often complicated by location issues [2][11] - The CBDT's notification also includes provisions for funding CGAS accounts through various electronic payment methods, enhancing convenience for taxpayers [5][6] Capital Gains Account Scheme (CGAS) Overview - The CGAS allows property sellers to deposit capital gains from property sales to defer tax liabilities when they are unable to reinvest in new properties within the specified time frame [12] - Taxpayers must deposit any unutilized capital gains into the CGAS before the due date for filing their income tax return under Section 139(1) [9][10] - If the deposited amount is not fully utilized for purchasing or constructing a new property within three years, it becomes taxable [10] Tax Filing and Exemption Claims - Taxpayers claiming benefits under Section 54 must select the appropriate Income Tax Return (ITR) form based on their income sources, with ITR-2 or ITR-3 being applicable for those with capital gains from residential property [8][10] - To claim exemptions, taxpayers need to provide specific details such as the date of transfer of the original asset, amount deposited in CGAS, and other relevant information in Schedule CG of their ITR [10]