Taxability of unutilised deposit under the Capital Gains Accounts Scheme, 1988 in the hands of the legal heirs of the assessee
CIRCULAR 743 dated , dated 6-5-1996
" at in such cases the said amount cannot be taxed in the hands of the deceased. This amount is not taxable in the hands of 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 devolving upon them. "
Questions:
1) Does it mean that the amount lyinging the deposit will not be subject to capital gains tax in either the hands of the deceased, the heirs or the estate?
2) Is this circular (1996 Circular) still valid/applicable?
Thanks
Gopal Mirchandani
CAclubindia
