09 December 2011
Mr. A dies leaving behind Rs.10lakhs in a post office deposit. the post office issues a cheque of the capital sum including interest till date on the name of the nominee who happens to be nephew of Mr.A. will this receipt in hands of nephew be treated as inheritence or will or gift or something else. what will be the tax impact on the same?
10 December 2011
The receipt in the hand of nominee will be treated as receipt from inheritence and the interest income on the Post office deposit will be tax in the hand of nominee.
10 December 2011
but the post office is saying that the same is not taxable as the owner has died and it is exempt in hands of nominee since he has received it in inheritence. also, please clarify how is this inheritence since the nominee is nephew of mr.A and not is son
CAclubindia
