25 June 2011
Dear All, I have recd shares from from Dad's a/c - regret to infrom he expired few months back. How should I treat this and how to account this & how to show to our IT department? waiting for kind guidence. advance thanks for all, warm regards, S.Sridhar Babu
25 June 2011
Assets received by way of inheritance will be added to your capital a/c in the liability side of your Balance Sheet and to the respective a/c in the assets side of the Balance sheet. No tax is payable for inheritance.
As has been stated by you that you have received from your Dad's Account. I presume that these shares were transferred to you when your Dad was alive. Hence, this cannot be treated as inheritance.
You have to disclose who are other members of the family and what has happened to other assets belonging to your father.
Anyhow in none of the cases the Income shall be treated and taxed in your hand. A father can give gift at any point of time to his son. So, treat this as gift and add to your capital account by showing Gift of shares from father. On assets side you show investment in shares as assets.
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