Father Passed away just after sale of property

Hi CA Club India Members

My father sold his property and was planning to buy a new one. Unfortunately, he passed away before he could buy a new apt/house. 

Now, under this untimely incident is there still tax implication because of the property sale, and if so who is responsible to pay it?

Replies (3)
Quick Summary
Following the recent passing of a father who sold a property but died before purchasing a new one, questions have arisen regarding tax implications. Legal heirs are responsible for the deceased's income tax liabilities. Fortunately, there are options to claim exemptions, such as purchasing a new residential property under Section 54, or referring to circular no. 743 dated 06/05/1996 for guidance on unutilised funds.

Legal hiers have to make application from ITAX portal.....( as legal hiers) and file return on behalf of deceased

Firstly, my sincere condolences are extended to you on the loss of your father. I pray that his soul rests in peace.

Secondly, the legal heirs of an assessee are responsible for the discharge of income tax liability after his/ her death.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Hi

i assume that property sold by your father was a long term capital assets within the meaning of section 2(14) 

although there is tax liability on your father but unfortunately he is no more. 

now there are two ways which are extremly good and legal :

1. now you can buy a residential property and get an exemption u/s 54. 

2. read circular no. 743 dated 06/05/1996. unutilized portion of can not treated as income in the hands of legal heir, 

 

but better you buy a new residential property and get exemption .  

 

 

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