Whether interest received on amount deposited in capital gain account under capital gain account scheme is taxable?

Ans. •  Capital Gains Account Scheme is a scheme to facilitate the taxpayer.

• If taxpayer could not invest the capital gains

- to acquire new asset

- before due date of furnishing of return of income

- then the capital gains amount can be deposited

- before due date for furnishing of return of income

-  in a special bank account

- maintained in any branch of a nationalized bank

• Interest earned on Capital Gains Account is chargeable to tax under the head "Income from Other Sources"

• Interest earned on Capital Gain Account is charged to tax in the year it accrues and is credited to the capital gain account of the assessee.