Father Passed away just after sale of property

Tax queries 389 views 3 replies

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)
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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