Query regarding 54 ec

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sounak ghosh (Querist)
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09 January 2014 Dear Expert,

I want assistance as regards the following situation

A woman had purchased a flat before 1981 and registered in her name. In Nov,13 she sold the flat of 60 lakhs and executed a will which had indicated the manner of distribution of the proceeds amongst her children and clearly indicated her eldest son shall be responsible for the payment of tax. She died in December , 2013. It is clear that long term capital gains shall be attracted and her eldest son shall be responsible for paying the taxes.

All i wanted to know is whether the eldest son if he purchases a new flat and if he wishes to invest in nhai or rec bonds will be allowed to avail the exemption or not? kindly, if possible, give reference to section or case laws, if any

Thanks & Regards

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 January 2014 Successor is entitled to benefit of exemption in case of death of the
assessee: In case of assessee's death during the stipulated period, benefit of
exemption under section 54(1), 54EC, 54F is available to legal representative if the
required conditions are satisfied by the legal representative. [Ramanathan
(CV) v CIT (1980) 155 ITR 191 (Mad)]

alternatively, if the person before dying deposited the said capital gains in a capital gains accounts scheme deposit, no tax shall be payable by the successor on such deposit.

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sounak ghosh

sounak ghosh (Querist)
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09 January 2014 Thank you so much Nikhil for the reply

Regards
Sounak

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 January 2014 you are welcome Sounak.