Your brother can avoid paying this capital gains tax by investing the entire net sales proceeds in a residential property and by meeting the requirements as laid down under Section 54F of the Income Tax Act. He may also invest in capital gains bonds to avoid paying tax on the long-term capital gains
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A nominee is only a caretaker of the assets who will hold the
asset as a trustee and will be legally bound to transfer it to the
legal heirs
My brother passed away in March 2016 leaving me, one
brother and sister as legal heirs. It came to our knowledge that my
brother had nominated the REC (Rural Electrification Corp. Ltd)
Capital Gains Bonds (from proceeds of selling his property) to
third parties, without our knowledge. The bonds matured in 2019. As
legal heirs to enforce our rights, what is the line of action we