Long term capital gain taxation

In this case there is no requirement to make any investment , since this is the case of devolution of the estate

Circular : No. 743, dated 6-5-1996.

" A question has been raised regarding the taxability of the unutilised deposit amount in the case of an individual who dies before the expiry of the stipulated period.

The matter has been considered by the Board and it is clarified that in such cases the said amount cannot be taxed in the hands of the deceased. This amount is not taxable in the hands of legal heirs also as the unutilised portion of the deposit does not partake the character of income in their hands but is only a part of the estate devolving upon them."

As per what you mentioned that there is no requirement for investment, what will be the tax calculation for LTCG ? Sale Proceeds Less Indexed COA = Taxable LTCG @ 20% subject to unexhausted basic exemption limit? Will this be the tax mplications ?

Thanks

YES , The treatment is correct. you can proceed with thi treatment after adjusting other source income with basic exemption.