Father Passed away just after sale of property

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 .