ICICI Bank has introduced the Capital Gains Account Scheme (CGAS), a specialized facility designed to help taxpayers manage their long-term capital gains while maintaining tax exemption benefits. The scheme allows customers to deposit un-invested capital gains or sale proceeds from specified capital assets, earning interest while remaining eligible for tax exemptions under the Income Tax Act.

Government Authorization and Industry Participation

The bank received government approval as an authorized institution to handle CGAS deposits, joining several other major financial institutions in offering this service. Other authorized banks include HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank, all providing similar CGAS services through their non-rural branches.

Scheme Availability and Eligibility

The Capital Gains Account Scheme becomes operational from January 1, 2026, initially targeting resident individuals and Hindu Undivided Families (HUFs). The bank plans to extend access to non-individuals and non-resident Indians (NRIs) in the near future. Customers can open CGAS accounts at ICICI Bank branches, excluding rural locations, in compliance with regulatory guidelines.

Account Types and Features

The scheme offers two distinct account categories to meet different customer requirements:

Investment Timeline and Approved Assets

Deposits under CGAS can be temporarily maintained for up to three years, providing taxpayers adequate time to plan strategic reinvestments. The scheme permits reinvestment in several approved asset categories:

• Property investments
• Agricultural land acquisitions
• New capital assets in industrial undertakings within non-urban areas
• Investments in special economic zones

Interest earnings are provided at rates comparable to regular savings accounts or fixed deposits, depending on the account type selected. All withdrawals require proper documentation and proof of fund usage as per CGAS regulatory requirements.

Bank Profile

ICICI Bank, one of India's leading private sector banks, reported total assets of ₹21,36,271.00 crore as of September 30, 2025. The launch of CGAS represents the bank's continued expansion of specialized financial products to meet evolving customer tax planning needs.

ICICI Bank , one of India's leading private sector banks, is facing escalating GST demands from multiple tax authorities across different states. The bank has now received GST orders totaling ₹253.93 crore from Mumbai and West Bengal authorities for similar issues related to services provided to customers maintaining specified minimum balances.

Latest West Bengal GST Order

On December 30, 2025 at 06:01 p.m., ICICI Bank received an Order under Section 73 of the West Bengal Goods and Services Act, 2017 from the Deputy Commissioner of Revenue, West Bengal. This order follows the Show Cause Notice disclosed by the bank on September 23, 2025 from the same authority.

Mumbai GST Order Details

Earlier, the bank received an Order under Section 73 of the Maharashtra Goods and Services Tax Act, 2017 on December 17, 2025 from the Additional Commissioner of CGST and CEx., Mumbai East Commissionerate. This order raised a total GST demand of ₹237.90 crore.

Combined GST Exposure

The bank now faces combined GST demands from both authorities totaling approximately ₹253.93 crore, all relating to the same underlying issue of services provided to customers maintaining specified minimum balances in their accounts.

Bank's Legal Strategy

ICICI Bank has indicated it will contest both orders through appropriate legal channels. The bank is already in litigation, including writ petitions, on similar issues raised in past orders and Show Cause Notices. For the latest West Bengal order, the bank will take appropriate steps including contesting through an appeal within prescribed timelines.

Regulatory Compliance and Disclosure

Both matters required disclosure to stock exchanges under Regulation 30 of SEBI regulations due to the aggregate amounts crossing materiality thresholds. The bank made disclosures on December 18, 2025 for the Mumbai order and December 31, 2025 for the West Bengal order, demonstrating compliance with transparency requirements while preparing legal challenges.