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Tax Implications on Sale of deceased owners proerty

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Nanu Sharma

16 Points Posted on 02 June 2024

There is a House that my Grandfather bought in 1998 on my grandmother's name. Now In March 2024 Grandfather sold it with a gain. But being it is on my grandmother's name and she is died at the time of sale. My father, Uncle and aunty signed on the sale deed. The entire sales consideration was received in my grand father's bank account. But the Income tax portal showing sale of land details in all person's profile who signed on sale deed. Now what would be the action to be done by each of the persons involved in this case?

Replies (4)

Quick Summary

This discussion addresses the tax implications when selling a property registered in a deceased owner's name. The sale proceeds went to the grandfather, but the income tax portal lists the sale under the profiles of the father, uncle, and aunt who signed the deed. The core issue is how to correctly calculate and declare the capital gains tax, considering the property was purchased in 1998 and the grandmother passed away before the 2024 sale. Advice is sought on calculating long-term capital gains (LTCG) and exploring potential tax exemptions under Sections 54 and 54EC for the signatories.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212529 Points Posted on 02 June 2024

Get circle rate of the property as on 01.04.2001. Calculate LTCG over the sale consideration by reducing indexed value of the said circle rate. Divide the LTCG in three equal portion and pay 20% tax over it (by all three individuals); or claim exemptions over it as provided under IT act.