Taxability on fund received under will

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2017 Dear friends, I have a query. Mr A gave his all property, Plot, House, Bank Balance etc to his brother and sister by a will, before death. After death both (brother & sister) got liquid assets i.e. cash, bank balance etc transferred in their respective accounts. Plz advice taxability of this liquid assets (cash / Bank balance) & fixed assets (land / house) etc at which point the same will be taxable?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2017 No tax payable on such assets transfer under will after death.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2017 Thank you sir. I feel now onwards if any income is earned from that Cash / Bank Balance, the same will be taxable. Further I feel transfer of Plot / House will not involve Capital Gain at present & the Cap Gain will be taxable in the year in which it is sold by these brother / sister. Plz confirm point wise.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2017 Yes
Any income is earned from that Cash / Bank Balance, the same will be taxable.
Further transfer of Plot / House will not involve Capital Gain at present & the Cap Gain will be taxable in the year in which it is sold by these brother / sister.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2017 Dear sir, thank you very much.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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26 September 2017 Inherited Assets is not taxable as per IT act. Since we dont have any inheritance tax in India, no taxation would arise.

Income from such inherited assets will be assessable as tax in the hands of the receiver

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2017 Thank you very much.Is there any column etc in ITR or otherwise where the said receipt is to be declared?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2017 show it under exempt income.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2017 Dear Sir, thanks a lot. Is it correct to show it as Exempt "Income" as it is only receipt of fund in bank. Further where to declare immovable property.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2017 Yes the receipt is only Income to you. No need to declare assets.