Tax Filing Guidance

[canikhil]

Hello All,

If any one has any questions for their tax returns, feel free to ask.

 

[godfather]

Vow!! Thanks, How is Quicko for tax filing?

 

[canikhil]

Looks good to me.

 

[tradermodified]

I received a sum of 105000 (100000 + 5000 interest), (bank FD) as a nominee of a deceased relative, in FY 22-23.

Whether I have to include this amount in my ITR, as my income or otherwise, (under which head).
What will be my tax liability. (any exemption allowed)
- is it on whole amount.
- only interest amount
- none

any other thing you will like to add.

Thanks

 

[timepass]

I am due to receive some money from the sale of parental property, as one of the 40 odd descendants.

What would be the tax treatment of such income ?

 

[bottrade]

No inheritance tax guys. And you don't need to declare it in your ITR.

 

[canikhil]

No inheritance tax guys. And you don't need to declare it in your ITR.

There is no tax on inheritance. However, there is a tax liability as and when you dispose of the property. Whether a tax is payable or not will depend on the indexed cost of the property and the selling price. it could be a case that no tax is payable because the indexed cost is higher or equal to the sale price.

A lot of people assume there is no taxability. But that is not correct.

 

[canikhil]

I received a sum of 105000 (100000 + 5000 interest), (bank FD) as a nominee of a deceased relative, in FY 22-23.

Whether I have to include this amount in my ITR, as my income or otherwise, (under which head).
What will be my tax liability. (any exemption allowed)
- is it on whole amount.
- only interest amount
- none

any other thing you will like to add.

Thanks

The amount if the FD including interest as at the date of death is not taxable in your hand. But any interest after the death is to be shown under Income from other sources.

 

[bottrade]

There is no tax on inheritance. However, there is a tax liability as and when you dispose of the property. Whether a tax is payable or not will depend on the indexed cost of the property and the selling price. it could be a case that no tax is payable because the indexed cost is higher or equal to the sale price.

A lot of people assume there is no taxability. But that is not correct.

Thanks for correcting.
Though I need more clarification on this and I figure it would be more complex and outside the scope of this thread. I google for more.
Thanks again.

 

[canikhil]

Thanks for correcting.
Though I need more clarification on this and I figure it would be more complex and outside the scope of this thread. I google for more.
Thanks again.

actually its simple.

lets say you inherit something today. Since there is no inheritance tax, you are not liable to pay anything today.

Now, let's say a year down the line, you dispose of this inherited property. If the disposal price is higher than the indexed cost of the inherited property, the difference is taxable in your hands.