Whether tax is applicable for money/property gained from WILL ?

POSTED BY Yogesh K ON January 19, 2012 12:06 pm ONE COMMENT

Hello,
I have 2 questions
1) In the WILL a person has gifted his fixed deposit money to his son. Now after the death of the person, the ownership of the FDs has come to his son. In this case whether the son is supposed to pay gift tax or income tax on this FD amount ?
2) In a WILL a person has gifted his flat (purchased from his own income) to his sister (married and of age say 50). Now after the death of the person, the ownership of the flat comes to his sister. In this case whether the sister is supposed to pay gift tax on it ?
– Yogesh

One reply on this article “Whether tax is applicable for money/property gained from WILL ?”

  1. Dear Yogesh K, here are the answers –

    1. The basic FD amount is tax free capital to you. the interest earned from the FD ‘ll become your own taxable income. Accordingly you w’d have to pay Tax on the interest of Fd as per your own tax slab.

    2. No, there is no gift tax for such flat (By the way, the gift Tax has been abolished long ago in 1995). Yes as & when the sister or her legal heirs sell the flat, the gains ‘ll be long term capital gains & ‘ll be taxed @ 20.6% after the benefit of indexation. For calculating the indexation, the original purchase year of the deceased person ‘ll be taken as purchase year for sister or her legal heirs.

    Thanks

    Ashal

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