15 March 2012
My grand mother died in april 2011 and then there was a credit of interest income upto september and receipt of LIC pension plan and other interest income and my father would be legal heir so what my father would have to do? whether LIC income received is taxable. and what to do about loans and advances given by my grand mother to my father
15 March 2012
Your father Has to file your Grand Mother's return as representative assessee. Lic Pension Plan amount is not taxable it is exempted. And the loans and advances from your grand mother to your father would be treat as gift and the balance amount transfer to your father's capital account. Actually the liability of the loans taken from decased assessee's should be pay their legal heirs if legal heirs not available then such liability would be income from other sources for that year. But in you case your father will be the legal heirs and the relation ship between the lendor and lendee is mother and son so that way i suggest you treat as gift. However please wait for some other experts suggestions. OM SAI SRI SAI JAI JAI SAI
CAclubindia
