Difference between Current and Capital Account

The current account captures total investment income paid or received to date in a given year .

The capital account captures only the current year’s inflows and outflows of investment purchases and sales.

• If I as a indian has to purchase Toshiba computer from england, my transaction will be recorded in the current account. If Toshiba comes to india and purchase a firm with investment exceeding 10%, it will be recorded in the capital account as FDI.