INCOME IN THE NAME OF DECEASED PERSON AFTER DEATH

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VIJAY KUMAR SHARDA (Querist)
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15 November 2009 My client (Senior citizen ) is having Fixed deposits in Banks, Investment in National Savings certificates, etc., He has also invested in 5 year Tax Saving fixed deposits & Claimed exemption under section 80-C during the assmt; yer 2007-2008 & 2008-2009. Being senior citizen he has also filed Form 15-H to Bank for Non-deduction of TDS . Nominations for the said deposits have been made in the name of different family members like wife, son, daughter in law, grand children and daughters etc., Each year he is reporting the Income from the said deposits in his I.T. Return. As under. .

a)Interest in respect of Bank deposits is reported on accrual basis as per the certificate obtained from the Bank.
b)Interest in respect of NSCs reported as per the table provided in I.T. Ready Reckoner.
He expired on dt; 17-8-2008. My doubts are as under.

1) In whose a/c the interest received on the said deposits for the period after his death i.e, from 18-8-2008 to 31-3-2009 should be reported? Whether it should be reported in Nominees a/c OR Can we continue the I.T. file of the deceased person even after the death till the maturity of the said deposits. The said deposits will mature after the period of 3 to 4 years.
2) Can Nominee file Form 15-G for Non deduction of TDS ? The Bank wants to deduct TDS on the said deposits? In this case what will be the position. If I.T, file of the deceased person is continued till the maturity of deposits the Legal representative can claim Refund by filing I.T. Return.
3) If 5 years tax saving deposits and NSCs are closed prematurely What will be position of deduction claimed under section 80-C? Will it be withdrawn?
4) If I.T. file of the deceased person is closed on 17-8-2008 shall we debit the amount of Bank deposits, NSCs etc, to the personal a/c of the deceased person on 17-8-2008 and credit to the a/c of Nominees
Please clarify?

hshivakumar

hshivakumar (Expert)
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16 November 2009 1. Bank will tr Such deposits as per nomination immediately.
2. You can file income tax returns in the name of deceased as estate a/c and such returns will be signed by legal representatives.
3. I think you can claim NSC after 5 years only.

4. You can transfer such deposits to nominees a/c