The government has authorised 19 additional banks to offer Capital Gains Account Scheme (CGAS) services, significantly widening access for taxpayers looking to save income tax on capital gains arising from the sale of property or other long-term assets. The move enables individuals to deposit unutilised capital gains in far more locations than before, easing compliance and improving convenience for those seeking exemptions under various sections of the Income Tax Act. Advertisement

The expansion comes on the heels of major changes introduced through the Finance (No. 2) Bill, 2024, which rationalised the capital gains framework. The reforms reduced holding periods to just one or two years, introduced a standard tax rate of 12.5% for most assets, eliminated indexation benefits, and brought

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