Deduction u/s 54

This query is : Resolved

RAMESHWAR KUMAR MISHRA (Querist)
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23 December 2013 Assessee has sold the house property and earned long term capital gain. Before investing in new house property the assessee died. Now the questoion is that whether assessee's spouse can purchase new house property in his name and whether deduction under section 54 shall be eligible to deceased assessee even if new house property is purchased in the name of spouse..Please refer to case law also..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 December 2013 In case the amount has not yet been invested, the legal heir can comply with conditions provided in Section 54 to claim exemption.

where the amount is already in Capital gains account scheme, i believe CBDT Circular No. 743, dated 6-5-1996 can be applied in such a case. it was considered that where the assessee dies and the amount in capital gains account scheme is still unutilized, the said amount cannot be taxed and shall be considered part of the estate.