Capital gains Exemption of deceased claimed by Legal Rep

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This query is : Resolved

Ganesh (Querist)

04 November 2021 My father sold a house and before tax filing he expired.

Cap gains is 80 Lacs that need to be reinvested in another house (50 lacs extra bonds already invested while he was alive).

He has 3 hiers -- Son, Daughter and wife and I as Son will be his legal representative for tax filing.

So should the house (reinvestment for exemption) be purchased in
1. Son (legal Rep) name
or
2. All 3 legal hiers name.

I just need to make sure exemption for 80L can be claimed

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 November 2021 Yes, the exemption can be claimed by legal heirs. After the death of legal heir, representative enters into the shoes of deceased and resultant capital gain exemption can be claimed on it by legal representative.
1. Late Mir Gulam Ali Khan v. CIT [165 ITR 228], the Andhra Pradesh High Court
2. C.V. Ramanathan v. CIT [125 ITR 191] Madras HC.
The investment can be in either mode, legal representative independently or jointly.

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