Carry forward of losses of deceased

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This discussion addresses whether legal heirs can carry forward a deceased father's long-term capital losses from stock market investments. While capital losses generally cannot be transferred, the situation for house property losses is different. If the property and loan liability are transferred to the mother's PAN, she can carry forward the house property loss. The advice given is to opt for the old tax regime to preserve these carried-forward losses, rather than the new tax regime under 115BAC, which might jeopardise the benefit.

Kavya

Kavya (Querist)
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29 July 2022 My father passed away last year due to covid. Apart from salary income, he also invested in the stock market. He had some long term capital losses. Can this long term capital loss be carried forward by the legal heirs so that they can carry forward this loss in their own name?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2022 As for income tax benefit, these are not allowed to be carried forward by heirs.

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Kavya

Kavya (Querist)
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29 July 2022 Also my deceased father and my mother were co-owner in a house property (father's share 90% , mother's 10%). They were also co borrowers of loan taken in respect of that property . my father was carrying forward the loss from the same house property in his own itr filing since 2 years. Can my mother carry forward this house property loss in her own name while filing her taxes so that she gets income tax benefit in the future?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2022 Yes, because the same property and loan liability has been transferred to her PAN.

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Kavya

Kavya (Querist)
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29 July 2022 Thank you sir. I had one last question to ask . my mother filed itr for my father last year , she is going to file this year for the last time, as he received some bonus from his company for his services. If we choose new tax regime for him this year under 115BAC we will get some tax refund. but if we do so will we lose carrying forward of house property loss which my mother will now carry forward in her own name ? the house property loss was shown by father in 2018 and 2019. he passed away in 2021 April. What will be beneficial old tax regime or the new tax regime?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2022 Go for old regime, and save the losses..

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