Incometax implications

POSTED BY girish arora ON February 24, 2013 9:09 pm ONE COMMENT

My wife is going to receive Rs. 3 lakh as nominee from the Senior Citizen Saving Scheme account of my father in law after his death. I want to know the income tax implications to my wife. secondly if she transfers the amount to my mother in law’s account then what is the tax implications to my wife &mother inlaw.

One reply on this article “Incometax implications”

  1. Ashal Jauhari says:
    February 25, 2013 at 12:38 am

    Dear Girish, is there in any WILL of your FIL? If not, I assume your wife is merely a nominee of the amount & as your FIL is no more, the amount should be divided between the heirs of your FIL in equal portion. That’s the legal position. On family front, if your wife & all other siblings are not claiming any stake on the amount, your wife can transfer the amount directly to her mother.

    Now the answer for Taxation – As it’s merely a receipt of capital, there is no tax on either your wife if she hold money with her or her mother. So in simple words zero tax at the time of receipts. Yes once this amount of 3L Rs. start earning any income, that income may become taxable.

    Thanks

    Ashal

    Reply

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