My father passed away on 20.04.10 and my mother and self ,by virtue of being a nominee, for his savings account, PPF, FD's, post office,LIC policy etc have received the benefits.
I want to know the following: 1. Do I or my mother or any nominee pay Tax as a result during FY 2010-11;AY 2011-12? 2. If yes, what is the rate and category? 3.If no, how do I record in my income tax as not applicable or exempted? 4.Does this fall under inheritance or wealth /gift tax ?
05 March 2011
The income which would have generated on the above investments, after the sad demise of your father, will be taxed in the hands of the person in whose name such amounts have been transferred.
However, As Shri Daruka ji replied, there will be no tax on inherited amount or from LIC claims etc.
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