Summary of CBDT Notification No. 161/2025 

Notification No. 161/2025, dated 19 November 2025, issued under Section 54GA(2) of the Income-tax Act, 1961, introduces the Capital Gains Accounts Scheme (Second Amendment), 2025. The amendments take effect from the date of publication in the Official Gazette.

1. Inclusion of Section 54GA
Section 54GA has been formally incorporated within the scope of the Capital Gains Accounts Scheme, 1988. Consequently, taxpayers claiming exemption under Section 54GA (relating to capital gains arising from shifting industrial undertakings to SEZs or notified areas) are permitted to deposit the amount of capital gains under the CGAS mechanism for availing exemption.

2. Expanded Definition of “Deposit Office”
The definition of “Deposit Office” has been broadened to include authorised branches of banking companies, including State Bank of India and other notified banks, enabling wider operational access for taxpayers.

3. Introduction of Electronic Mode of Deposit
A significant reform is the recognition of “electronic mode” as a valid method for making deposits under CGAS. Accepted modes include credit card, debit card, net banking, UPI, RTGS, NEFT, IMPS, and other prescribed digital payment instruments.
The date of deposit shall be the date on which the payment is received by the Deposit Office, ensuring clarity for compliance and exemption eligibility.

4. Electronic Record-keeping and Account Statements
The amendment permits issuance of electronic statements of account as a valid alternative to traditional passbooks. This modernises record-keeping and aligns with the evolving digital infrastructure.

5. Digital Closure of CGAS Accounts (Applicable from 1 April 2027)
Any closure of CGAS accounts on or after 1 April 2027 must be undertaken in electronic form, authenticated through a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Detailed procedural guidelines will be prescribed by the Directorate of Income-tax (Systems).

Professional Implications
• Enhances usability of CGAS for taxpayers eligible under Section 54GA.
• Streamlines compliance by enabling fully digital deposits and statements.
• Reduces administrative burden on taxpayers and banks.
• Establishes a digital framework for future closures, consistent with CBDT’s technology-driven compliance systems.

Link to seen Notification
https://incometaxindia.gov.in/communications/notification/notification-161-2025.pdf