Titus (1 Points)
19 March 2023Hi CA Club India Members
My father sold his property and was planning to buy a new one. Unfortunately, he passed away before he could buy a new apt/house.
Now, under this untimely incident is there still tax implication because of the property sale, and if so who is responsible to pay it?
Mahesh Shah
(2308 Points)
Replied 20 March 2023
CA Sorav Gupta
(Chartered Accountant)
(1005 Points)
Replied 20 March 2023
Firstly, my sincere condolences are extended to you on the loss of your father. I pray that his soul rests in peace.
Secondly, the legal heirs of an assessee are responsible for the discharge of income tax liability after his/ her death.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 21 April 2023
Hi
i assume that property sold by your father was a long term capital assets within the meaning of section 2(14)
although there is tax liability on your father but unfortunately he is no more.
now there are two ways which are extremly good and legal :
1. now you can buy a residential property and get an exemption u/s 54.
2. read circular no. 743 dated 06/05/1996. unutilized portion of can not treated as income in the hands of legal heir,
but better you buy a new residential property and get exemption .
CAclubindia
