• Insurance, bank proceeds from USA

My relative's son , Indian , aged 27 , on H1 Visa , unmarried expired in California recently . HIs Life Insurance , bank money, stock holding sale proceeds need to be brought to India in his father's name
The relative's brother stays in US and he is a US citizen

1. Should the father send an affidavit authorising his brother in US to close all the financial transactions
2. Should the affidavit or POA be as per Indian format or USA format ?
3. Should the affidavit , notarised be stamped by the Min of Ext services ( sounds foolish) or renotarised in Indian Embassy in California ?
4. Are these Insurance proceeds taxabel ? what about bank money ,, taxable in US and India ??
Asked 11 days ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

Lawyers are available now to answer your questions.

9 Answers

1. An Authorization letter authorising the relative/representative either in the form of a letter or power oaf attorney deed duly notarized  by a Notary public may sent to him for doing the needful at his ends on behalf of the father of the deceased.

2. The power of attorney deed can be prepared in the Indian format also, if it is not acceptable then they will send the format which can be complied accordingly.

3. This may not be necessary, if it is insisted by an authority at their end in USA, this can be done by the representative at his end itself.

4. The insurance claim amount is not taxable in India. 

T Kalaiselvan
Advocate, Vellore
77368 Answers
1460 Consultations

5.0 on 5.0

father can send affidavit authorising his brother to close all financial transactions 

 

2)however mere affidavit may not suffice . you need POA to b executed   by father on RS 500 stamp paper 

 

3) not necessary to be stamped by minstry of externa; affairs . notraised POA should suffice 

 

 

 

Ajay Sethi
Advocate, Mumbai
87215 Answers
6050 Consultations

5.0 on 5.0

Indian format if it is sent from India 

 

2) share sale proceeds are taxable 

Ajay Sethi
Advocate, Mumbai
87215 Answers
6050 Consultations

5.0 on 5.0

You can prepare a general power of attorney in the Indian format  itself because the executant is an Indian and he would be executing the same in India. 

Bank cash and the share sale proceeds are different items.

Bank claim amount is taxable in the hands of the recipient since it is an income from other source.

The  share sale proceeds will attract long term or short term capital gains tax as applicable. 

T Kalaiselvan
Advocate, Vellore
77368 Answers
1460 Consultations

5.0 on 5.0

Law applicable to claim bank balance, insurance claim etc. of deceased insurer and account holder is U.S. law though he was on H! visa. His legal heirs have to follow the procedure  established under U.S. law. They are advised to approach U.S. Consulate in Hyderabad, that will be the best option instead of beating about the bush. It is  not certain whether a legal heir can execute a GPA in favor of third party. You can check if even brother as one of the legal heirs can claim everything.

Ravi Shinde
Advocate, Hyderabad
2315 Answers
37 Consultations

5.0 on 5.0

Dear Client,

You can file in US format and no tax is applicable on the money being transferred from abroad to India. None at all. This is because you'd have already paid tax on the income you are earning in the country abroad. India has signed the Double Taxation Avoidance Agreement with 85 other countries.

Thank You

Anik Miu
Advocate, Bangalore
4380 Answers
45 Consultations

4.9 on 5.0

1. PoA will be required in above case. 

2. It should be endorsed at the embassy or consulate

3. If it's taxable at US and tax is deducted then again it will not be deducted in india

Prashant Nayak
Advocate, Mumbai
26719 Answers
80 Consultations

4.4 on 5.0

1. If he was unmarried then  parents can give his consent for closing transactions in the account. 

2. POA needed in India format 

3. This POA should be notarized as per rule of India , and attested from Indian Embassy 

4. Yes, bank funds are taxable , however insurance claim may be exempted from tax. 

Mohammed Shahzad
Advocate, Delhi
9478 Answers
107 Consultations

5.0 on 5.0

-  Affidavit is required.
-  Its better to send it in US format to avoid delay, resending etc.
-  Notarized will do.
-  Its not taxable.

 

Ankur Goel
Advocate, Bangalore
430 Answers

4.9 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer