| Question And Answer | |
|---|---|
| Subject: | Execution of sale deed by legal heirs of property already sold 35 years ago |
| Category: | Income-Tax |
| Querist: | K Desai |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Capital Gains, excecution of sale deed, legal heirs |
| Date: | July 19, 2023 |
Would the legal heirs be liable for capital gain tax without receiving any payment & for only executing the sale deed of property already sold & possession held by buyers 35 years ago & payment was realised during sale by the deceased ancestor. What evidence would the heirs require for executing the deed & being exempted for capital gain? Any specified sections/provisions?
It is a well-settled position in law that the date of registration relates back to the date of the execution of the agreement. This has been upheld by the Hon’ble Supreme Court in the case of Gurbax Singh v. Kartar Singh and Others 254 ITR 112 (SC). However, the details of registration will be forwarded by the Registrar to the Income-tax Department and consequences will follow.