One of my client Mr. X sold a residential house at Mysore in the month of October 2010 for Rs. 60 Lakhs. For getting income tax rebate on Capital gains on the said amount, he had invested Rs. 50 Lakhs in REC Capital Gain Bonds (for exemption u/s 54EC) on 28-03-2011. As six months would be expiring by April 2011 he was intending to invest the balance Rs. 10 lakhs in REC Capital Gain Bonds in the first week of April.
Unfortunately, Mr. X expired on 4th April 2011.
Mr. X is survived by his wife and two children- a son and a daughter.
Now the question is how that balance of Rupees Ten Lakhs should be accounted. The wife and the children are of one mind to deposit the balance of Rs. 10 Lakhs in REC Capital Gain Bonds.
(I) .. Who has to file the IT Returns on behalf of Mr. X ?
(II). Mrs. X or her children will be a deemed assesses or a representative assessees?
(III). Can Mrs. X or one of her Children deposit the balance of Rs. 10 Lakhs in REC Bonds in her/ their name and claim Capital Gain Tax Exemption and file ITR return as a deemed assessee ?
(IV) Any other advice.
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