Capital gains exemption

[LAKSHMISH IYENGAR]

Sir

My client's father sold a landed property and he wanted to invest the capital gains amount in Rural Bonds and claim exemption.  Before he could do this he died.  My client who is the only successor has to file the return of income as legal representative of his father.  Can my client invest in Capital Gains Exemption bonds and claim exemption u/s 54EC? Please clarify.

[muthuswamy kumar]

Yes. There is no bar. You can still claim exemption by investing in CGE bonds as you are his lega heir. Declare it to IT and claim.

By,

M. RAM KUMAR

AI Summary

Capital gains exemption: legal heir may invest sale proceeds in notified bonds and claim exemption after decedent's death. The deceased transferor's successor, acting as legal representative, may invest the capital gains proceeds in eligible rural/notified bonds and claim the capital gains exemption by filing the deceased's return, making the qualifying investment and declaring the investment to the tax authorities when claiming the exemption.