Section 54F & inherited property

Vijay (freelancer) (21 Points)

11 September 2022  

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