Core Viewpoint - The Capital Gains Accounts (Second Amendment) Scheme, 2025 introduces significant updates to the Capital Gains Account Scheme (CGAS), enhancing its digital capabilities and expanding its applicability for taxpayers, non-resident Indians (NRIs), and businesses [1][15]. Digital Transformation - The amendment transitions CGAS into the digital era by allowing electronic deposits, expanding eligible banks, accepting online statements, and mandating digital account closure from 2027 [2][15]. - Electronic payment modes are formally recognized for CGAS deposits, including credit cards, debit cards, net banking, IMPS, UPI, RTGS, NEFT, and BHIM Aadhaar Pay, facilitating instant deposits for NRIs and remote filers [5][6]. Compliance Simplification - The changes aim to simplify compliance, reduce delays, and eliminate frictions for property sellers, NRIs, and industrial undertakings [3][14]. - The inclusion of Section 54GA in the CGAS mechanism streamlines compliance for businesses relocating to Special Economic Zones (SEZs) [7][14]. Accessibility Improvements - The definition of "Deposit Office" is broadened to include more banks, enhancing accessibility for taxpayers [8][9]. - The acceptance of electronic account statements replaces physical passbooks, aligning with modern banking practices [10]. Future-Focused Reforms - Mandatory digital closure of CGAS accounts will be implemented from April 1, 2027, requiring electronic submission of closure requests [11][12]. - The digital process will be designed by the Principal Director General of Income-tax (Systems), ensuring data security and compliance [13]. Practical Impact - The amendments significantly reduce compliance hurdles for NRIs and provide clarity on deposit dates for real estate sellers, leading to faster processing [14]. - Businesses relocating to SEZs benefit from a streamlined mechanism to safeguard capital gain exemptions, while banks experience a more uniform compliance environment [14].