Income tax on money inherited on death of a parent

My dear Pankaj, My wife was a joint holder of a fixed deposit opened by her mother (a senior citizen) as the first holder. Unfortunately her mother recently expired before maturity of the fixed deposits. No income tax was ever payable as the net interest income fell far short of the taxable limit. However her mother could not submit form 15H this year due to illness and the bank started deducting tax @ 10% from the interests on the Fixed Deposits. The Fixed deposits were closed by my wife by submitting a copy of her mother's death certificate and the FD money invested in a fresh fixed deposit opened by my wife as a senior citizen with form 15H. My wife is a housewife and has no income of her own. Will the money so invested be liable to be treated as her taxable income in the current financial year? The amount involved is about Rs. 4 lakhs. I would appreciate if you could kindly advise me on this. Regards, S.K.Sen [email protected]

asked Sep 14 '12 at 22:09 by swapansen 1344

There is no income tax on such inherited assets and properties. Only income/gains from its investments would be taxable (interest from bank fixed deposit). As she is a housewife and if her taxable income for year would be less than 2 lakh, no income tax would be payable.

answered Sep 15 '12 at 09:04 by Pankaj Batra 5.2k320


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Asked: Sep 14 '12 at 22:09

Seen: 4,059 times

Last updated: Sep 15 '12 at 09:04