tax liability on legal heir

My grandfather has sold agriculture land in urban area in Feb 2012 & the LTCG amt earned has been transferred to his saving bank a/c. Unfortunately he has passed away within 2 weeks of land sold. While alive; he had made/written a will in which he has mentioned me (grandson) as a legal heir.

As he has passed away in no time after selling the land & therefore didn't had enough time to invest the LTCG amt to save tax.

Would like to understand from you, Being his legal heir, am I suppose to pay tax on LTCG earned or else will be given an equal opportunity to invest (in buy agriculture land, house or bonds) the amt. to save taxes?? Please answer at the earliest as we have to file return before 31st July.

asked Jul 13 '12 at 23:59 by dimpy 111

As a legal heir, you need to file income tax return on behalf of your grandfather.
You can invest as per tax saving sections 54F, 54EC and 54B, to save income tax on the long term gains. You would also get equal chance of saving tax as it would have been available to your grandfather.

answered Jul 18 '12 at 09:21 by Pankaj Batra 5.2k320


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Asked: Jul 13 '12 at 23:59

Seen: 1,879 times

Last updated: Jul 18 '12 at 09:21