Section 54F & inherited property

Tax queries 185 views 1 replies

I currently own a single house property which is self occupied. My parents jointly own a house property in a different town. My father passed away in Jan 2022.  My mother and myself are the legal heirs for my father.The jointly owned property has not been mutated since his death.

I had a long term capital gain in May 2022 from sale of shares.  I want to buy a house property and claim LTCG exemption under section 54F.  The section mandates that there has to be only one house property owned to claim this exemption. After my father's death, I inherit a right in his property. Will this right in his property be considered as an additional property and thereby disallow me from claiming exemption under section 54F when I buy a new property?

I want to do a relinquishment deed of my father's property to my mother. Will this have any impact on claiming exemption under section 54F?

 

Thank you,

Vijay

 

 

Replies (1)

As the property has not been mutated in your name, no problem in claiming exemption u/s. 54F of the act.


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