Receipt of money upon selling Deceased Father's House

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Quick Summary

If you've received money from selling your deceased father's house, it's likely subject to Capital Gains Tax. You can potentially avoid this tax by reinvesting the proceeds into another property within two years of the sale. Alternatively, you can deposit the funds into a Capital Gains Savings Account before filing your tax return for that financial year.

PALANI M

PALANI M (Querist)

10 December 2024 will i have to pay income tax for the amount received out of selling my father's house who was expired 30 years ago being the legal heir after the demise of my mother 3 years ago.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 December 2024 Yes, you have transferred a house property, which is owned by you after the demise of your parents.

PALANI M

PALANI M (Querist)

10 December 2024 I have become the owner by default and still the house taxes are not changed to my name. Anyways is it possible to avoid the taxes and if taxable under which head this income is to be shown. Moreover I am going to buy an near my office with this money again. Is there any time frame to hold this money in my account without paying any taxes.

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PALANI M

PALANI M (Querist)

10 December 2024 Thank you for your valuable reply sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 December 2024 1. It is capital gain Tax
2. You can save the tax by purchase of any house property within 2 years.
3. Before filing the relevant ITR you need to invest the money either in property or deposit in capital gain savings account.

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PALANI M

PALANI M (Querist)

10 December 2024 Is it necessary that the investment in property on the same assessment year. If I sell in January 2025 then I have either open the capital gain savings account or buy an property before end of 31st March 2025 sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 December 2024 You can buy house property within 2 years from the sell date i.e. up to January 2027, but before filing return of FY 2024-25 in July 2025 you have to deposit the balance amount in the CGAS account.

PALANI M

PALANI M (Querist)

10 December 2024 Thank you so much for your inputs and information sir.

Thanks again for your valuable time and support sir.

Kudos to the entire CACLUB INDIA team for providing such a service for people like me.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 December 2024 You are welcome,

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