27 February 2010
Hi, I have a question regarding taxpaying. I have lost my father last October 2009.He was a retired person and he filed his return (thought he had no tax to pay).
Now with his sudden demise,my mother has received a lumpsum amount of Rs 1.5 lac from LIC Varistha Bima Yojana & an amount of Rs 1.09 lac from Employees Provident Fund & now she receives a regular income of Rs 545 as monthly pension from EPF.Other than this she receives some minimal amt as dividend from shares which are in the name of - [a]my father only [b] my mother & my father both.
My Mother is a housewife.And now with my father's demise will she be required to pay tax?If her income is taxable for this year & then not taxable in the next year then does she still hve to file return next year also. Will the 2 lumpsum amt that she has received from LIC & EPF be taxable? Is there any manner by which I can save tax ( as she is financial not strong)?Please suggest some investment option for her keeping in mind that she has a studying son(for which they may need maney soon) & a married daughter(ie me). I have heard some investment option-
[a] MIS - but there the money will be for 6 yrs & penalty will b there if I withdraw before 6 yrs but MIS is exempt from tax?
[b] FD - but it is not tax exempt?
I need to know about investment that will not have a long duration & also be tax exempt.
I will be highly grateful if someone reverts me back with suggession as I am totally confused.
16 January 2011
I don't think that your mother is getting substantial income for taxation. Income on account Insurance policy and PF etc. are not at all taxable.
CAclubindia
