The effect of death of Muslim husband or wife during the period of iddat, following a revocable…

Under Muslim personal law, applied through the Muslim Personal Law (Shariat) Application Act 1937, a revocable talaq does not end the marriage until the iddat expires, so if either spouse dies during the iddat the survivor inherits from the deceased; hence "both can inherit". The position is different for an irrevocable divorce, where the mutual right of inheritance ends at once.