Tax treatment

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suhas (Querist)
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07 November 2009 Assessee received some investments and property from his parent . on which parent not paid any income tax pertaining to several assessment year. Is there any tax burden on such assessee ?

Sunil

Sunil (Expert)
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07 November 2009 You have not specified how the property has come to assessee. However if it is a gift assessee will have to prove the capacity of the donor to gift the property amount. In case no returns are filed on account of being within exemption limit, just make a balance sheet from the last return filed till date which should show the moneys, investments and property backed by individual capital. Account the exempted or below taxable limit incomes and drawings from passbooks available to you and for last 2 or 3 years make a computation indicating all receipts and nil tax.

In case it is received through a will or probate, normally the administrator has to comply with tax compliance for any taxes payable by the deceased before distribution of the properties. If returns were not filed, make computations based on whatever information is available.