Capital gain

The issue is regarding the Long term capital Gain

In case if an individual has sold property & deposited half of the amount in Capital  Gain account Scheme & remaining half is left with himself & dies before depositing remaining amount in the capital Gain account Scheme. 

What will be the tax treatment of the same ? Whether legal heirs will be liable to make payment of same or not?

The unutilised deposit amount in the Capital Gain Account Saving scheme in the case of an individual who dies before the expiry of the 2/3 years stipulated period under section 54, 54B, 54D, 54F and 54G, cannot be taxed in the hands of the deceased. this amount is not taxable in the hands of the legal heirs also as the unutilised portion of the deposit does not partake the character of income in their hands but is only a part of the estate. (Circular No. 743, dated 06-05-1996). the copy of circular is attached herewith.

The circular has been issued regaring the amount deposited & an individual dies but there is query in case if an individual dies before depositing half of the amount in capital acccount saving scheme.