You can file for letter of administration on basis of the documents and get the order from the competent court
Inheritance from someone with no blood relation
My uncle (no blood relation - just a very old family friend) who was a bachelor staying alone with no legal heirs or family members, passed away recently in September 2022. He considered me like his grandson. Before passing away, he had put my name as nominee in his demat account, and after his passing, the broker helped to transfer all the shares to my name in October 2022. (Roughly 60L) Also, just before passing away, he also added my name as joint holder in all his savings accounts and FDs (roughly 50L). I have to still get his name removed from these by submitting death certificate to the banks. After this, I assume - all the investments will be completely in my name and I don’t need to do anything about it? I don’t have to report anything in my IT returns or pay any taxes on such inheritance, right?
Asked 2 years ago in Taxation
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5 Answers
You have to declare the assets inherited by you in your income tax returns
no tax is payable on such inheritance
Once it's a joint account on the basis of either or Survivor then it is not called as inheritance.
You will automatically become the owner of the entire shares subsequent to the event of the death of joint holder.
Therefore there's no tax payable now, you would be liable to pay the capital gains tax when you are selling it.
Better keep is silent. Marely nominating does not give any inheritance right. If he has no legal heirs, than his legacy will vest in the state.
Joint holder - in that you are 70 to 80 % safe.
Once the FDs and account clean - clear it and deposit in other bank account. Any time objection may come.
If there was WILL - than it would be grate.
Dear client,
Adherence to assets such as bank accounts and shares necessitates adherence to legal and tax requirements. Even though you've taken action to move the assets into your name, it's imperative to make sure that the paperwork is in order to prevent problems down the road. The transfer of shares into your name with regard to the demat account is a good step. To confirm the transfer, you must, however, update the records with the depository participant and supply the required paperwork. It's also a good idea to save all pertinent documents for later use. It is imperative that you update the savings accounts and FDs in your name with the banks and remove your uncle's name from them. To expedite this process, make sure you turn in the death certificate as soon as possible. In terms of taxes, inheritance is typically not subject to taxation in India. All income derived from the inherited assets, including interest from foreign funds and dividends from shares, will be subject to taxation based on the relevant income tax slabs. Make careful to track this revenue and appropriately declare it on your income tax filings.
Hope this helps you.
