I am the only son of my parents. My mother passed away a few years ago. My father passed away in March with no will written. He had an FD in a cooperative servicebank in Kerala and it gets mature in August. My questions are: a) What is are the tax implications, if any, it has upon me ? b) What are the documentation/details about this FD that I have to maintain for income tax returns purpose ?
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1.The bank would seek proof of heirship like succession certificate once you claim the rights over the FD.
2.So apply for the FD from local court and on its production you will be handed over with the FD.
3.There is no tax implication on inheritance of FD though it is better if you consult with a tax practitioner.
1. You are inheriting the said movable property being the FD amount from your parents.
2. Inherited movable properties are not taxable as per I.Tax Act.
3. After you en-cash the said FD and deposit the amount of the said FD in your account, the interest to be accrued thereupon will be treated as income as per Income Tax Act and will be added to your total income for levying Income Tax as per the slab, your income will fall in next year.
1) you have to declare receipt of amount received on maturity of fixed deposit in your income tax returns
2) interest received on maturity of fixed deposit would be added to your income
3) retain copy of fixed deposit receipt for your records
1. No taxes need to be paid for the FD amount inherited from your father either by gift deed or by inheritance under section 56 of IT act.
2. The interest earned on the FD amount in your hand shall be taxable
