Your uninvested capital gain has a deadline — here's exactly what it protects.
Most sellers know they have time to reinvest a capital gain — a purchase window, a construction window. Fewer know there's an earlier, separate clock: whatever part of the gain is still uninvested when your income-tax return falls due has to reach a Capital Gains Account Scheme (CGAS) account by that date, or the exemption claim on the unutilised portion is at risk. This page explains why that clock exists, how to work out your typical date, and the mechanics worth raising with your CA — which banks, how withdrawal works, and what happens if the money goes unused.
UPDATED 25 JUL 2026 · MECHANICS: STATUTE-OUTLINE LEVEL · YOUR CA CONFIRMS THE EXACT DATE
The clock nobody explains upfront
Reinvestment exemptions under Sections 54 and 54F give you a purchase window (roughly one to two years) or a construction window (roughly three years) from your date of sale. Those windows outlast your very next income-tax return — which creates a gap: what happens to the exemption claim for the months or years between "I sold" and "I actually reinvested"? The CGAS deposit is the answer. Depositing whatever part of the gain is still uninvested, into an authorised CGAS account, before your return-filing deadline is what keeps the claim alive for that gap period — without it, the exemption on the uninvested portion is not preserved simply because your longer reinvestment window hasn't closed yet.
Indicative — confirm with your CA.
How the deadline is calculated
Two inputs decide your typical date: your financial year of sale (April to March, not the calendar year) and whether your return is an audit case.
| Filing category | Typical ITR due date | Typical CGAS deadline |
|---|---|---|
| Individual, non-audit | 31 July | 31 July (same date) |
| Audit case (business/professional income above applicable thresholds) | 31 October | 31 October (same date) |
The assessment year is the one following your financial year of sale — sell any time between April and March, and your typical deadline falls in the July (or October) after that financial year ends. Government notifications sometimes extend these due dates for a given year; do not assume an extension without checking. Want your own exact date instead of the general rule? Use the CGAS Deadline Calculator.
What happens at — and after — the deadline
Which banks accept CGAS deposits?
Public sector banks and certain other notified banks offer CGAS accounts, generally in two forms — a savings-style account and a term-deposit-style account. This page does not maintain a bank list or recommend a branch; ask your CA and your preferred bank which currently offers CGAS accounts near you, and which account type fits your expected reinvestment timeline.
Indicative — confirm with your CA.
How does withdrawal-for-purchase work?
Once you've identified the property, there's a prescribed withdrawal process to release CGAS funds for that specific purchase or construction — commonly involving an application to the bank and, depending on the amount and process, sign-off from your Assessing Officer. Ask your CA to walk you through the current paperwork and expected timeline well before you need the funds released quickly.
Indicative — confirm with your CA.
What if I never buy or build?
An amount deposited in CGAS but not used for the intended residential purchase or construction within the applicable window can become taxable — generally treated as a capital gain in the year the relevant window closes. How exactly that plays out — the timing, the amount, and any interaction with your other filings — depends on your specific facts and is a computation for your CA, not a number this page can state in general.
Indicative — confirm with your CA.
Frequently asked
What is the Capital Gains Account Scheme (CGAS), in plain terms?
It's a parking account for a capital gain you intend to reinvest (for exemption purposes) but haven't reinvested yet. If part of your gain is still uninvested when your income-tax return falls due, depositing that unutilised amount into a CGAS account at an authorised bank, before the filing deadline, is what preserves your exemption claim while you keep looking for the property to buy or build. It is not a regular savings account, and simply holding the money elsewhere past the deadline does not have the same protective effect. Indicative — confirm with your CA.
What is the CGAS deadline, exactly — and how is it calculated?
It's tied to your income-tax return due date for the financial year your sale falls in — typically 31 July of the following assessment year for individuals not requiring an audit, and typically 31 October for audit cases. The financial year runs April to March, so a sale in, say, February sits in an earlier financial year than a sale in April of the same calendar year, even though only two months apart. Whether you fall into the audit or non-audit category, and whether a due-date extension applies in a given year, are both facts only your CA can confirm. Indicative — confirm with your CA.
Which banks can I open a CGAS account with?
Public sector banks and certain other banks notified for this purpose accept CGAS deposits, generally under two account types — a savings-style account for funds you may need to access sooner, and a term-deposit-style account for a fixed period. Exactly which banks and branches currently offer CGAS accounts, and which type suits your situation, is a question for your bank and your CA — this page does not maintain or endorse a bank list. Indicative — confirm with your CA.
How do I withdraw from my CGAS account once I've found a property to buy?
There is a prescribed withdrawal process — typically involving an application to the bank, often with your Assessing Officer's endorsement depending on the amount and the bank's process, so the funds can be released for the specific purchase or construction. The exact paperwork, timelines and any bank-specific requirements are precisely what to confirm with your CA and your bank before you need to move quickly. Indicative — confirm with your CA.
What happens to the money if I never use it to buy or build?
If the deposited amount is not used for the intended residential purchase or construction within the applicable window, the unused amount can become taxable — generally in the year the relevant window closes, as a capital gain. Exactly how that plays out for your specific holding, exemption route and timeline is a computation for your CA, not a fixed rule this page can state for every case. Indicative — confirm with your CA.
What if my ITR due date gets extended — does my CGAS deadline move too?
The CGAS deadline is generally tied to the return-filing due date, so when the government extends the ITR due date for a category of taxpayers, the CGAS deadline for that category typically moves with it — but extensions are announced year by year and are not something to assume in advance. Confirm the current-year position with your CA closer to your deadline rather than banking on a hoped-for extension. Indicative — confirm with your CA.
Can I open more than one CGAS account, or deposit in installments?
The scheme's operating rules and any restrictions on multiple accounts or installment deposits are bank and process questions with specific answers, not a general rule this page states. If your situation involves gains from more than one sale, or funds becoming available at different times, raise the exact structure with your CA and your bank before the deadline, not after. Indicative — confirm with your CA.
Want the property side walked through?
Leave your name and number and our desk will reach out on WhatsApp. For the tax dates themselves, your CA is the right desk — ours is for the property side.
Received.
The desk will reach out on WhatsApp shortly.
By submitting you consent to be contacted and to your details being shared with the developer/promoter. This page is educational — nothing on it is tax advice; confirm every figure with your CA.