CBDT Enables Online Closure of Capital Gains Accounts from April 2027

The Central Board of Direct Taxes (CBDT) has announced that from April 1, 2027, taxpayers can close Capital Gains Account Scheme (CGAS) accounts online. This reform eliminates the need to physically submit closure requests to jurisdictional assessing officers, addressing one of the biggest pain points for property sellers who could not immediately reinvest capital gains. The notification was issued on November 19, 2025.

Why do the Capital Gains Accounts Matter?

When a property is sold for profit, the gains are classified as capital gains under income tax law. Taxpayers can claim exemptions under Sections 54 and 54F by reinvesting these gains into another property or specified asset within prescribed timelines. If the entire amount is not utilised before the income tax return filing deadline, the balance must be deposited into a CGAS account to retain eligibility for exemption.

Key Changes in CBDT Notification

CBDT stated, “The option of closure of account to be exercised under this paragraph, shall be furnished electronically either under digital signature or electronic verification code on and from the 1st April, 2027.”

The notification also empowers the Principal Director General of Income-tax (Systems) to specify procedures for filing Form G and Form H, ensure secure verification through electronic codes, and implement robust archival and retrieval policies. These measures aim to simplify compliance and enhance security.

Online Payment Mechanism for CGAS

CBDT has introduced electronic payment options for funding CGAS accounts. The notification said, “(fa) ‘electronic mode’ means payment by use of electronic clearing system through a bank account or by way of any of the following modes, namely:–– (a) credit card; (b) debit card; (c) net banking; (d) IMPS; (e) UPI; (f) RTGS; (g) NEFT; and (h) BHIM Aadhaar Pay.”

This change allows taxpayers to deposit funds digitally, reducing reliance on physical banking processes.

What is the Capital Gains Account Scheme?

CGAS was introduced to help taxpayers preserve exemption eligibility when reinvestment timelines cannot be met. For instance, individuals selling a long-term residential property and claiming benefits under Section 54 must deposit unutilised gains into CGAS before the ITR filing deadline. Taxpayers with capital gains cannot opt for ITR-1 or ITR-4; they must file ITR-2 or ITR-3 depending on other income sources.

Read More: Government Notifies Capital Gains Scheme.

Conclusion

CBDT’s move to enable online closure and digital funding of CGAS accounts marks a significant step toward easing compliance for property sellers. By introducing electronic verification and payment options, the government aims to improve transparency and convenience. These changes will help taxpayers manage capital gains more efficiently while reducing administrative bottlenecks.

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