Capital gain bonds u/s. 54ec

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Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2018 The assessee was expired recently after selling the long term capital assets (residential house).

Can his legal heir make investment in capital gain bond scheme u/s. 54EC as 6 months period hasn't expired from the date of sale of house?

If yes, the investment is to be made in name of one legal heir (Viz. his wife) or all his legal heirs (Viz. mother and two sons).

Will ITO accepts the CG bonds purchased in the name of legal heir after the death of assessee and allows the benefits of sec. 54EC to the assessee, in the scrutiny case? Any case law supporting this contention. Any other precautions to be taken in this regard.

Thanks in anticipation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 January 2018 Yes legal heir can make investment. Make investment in the name of one legal heir. See the link for more information.
https://www.forum.charteredclub.com/threads/deposit-in-capital-gains-account-after-death-of-seller.7108/

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

20 January 2018 This is a vexed issue. However, Andhra Pradesh High Court ,u/s 54, has decided in
favour of the assessee in the case of Late Mir Gulam Ali Khan Vs. CIT [165 ITR 228]

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Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2018 Thanks a lot for your kind replies.

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