My father recently passed away he was an government employees so now their department has credited money of my father to my mother’s account she is housewife never had an account previously never filled IT return just now recently opened account so my question is now do my mother needs to pay tax on the amount which was credited from my father department which mainly include gratuity ,PPF account money,leave in cash she doesn’t have any other income so how we can know which taxbraket she is in , if yes can u help us how we can calculate how much is taxable in that me and my mother doesn’t know much about this I m just 19year old so I doesn’t have much knowledge regarding this please guide us what we should do and one question is do we need to close my father other accounts in bank or it will be automatically closed if they are inactive .actually I have so many questions I hope you can understand my condition
Thanks a lot
Tax on inheritance to the wife in India is not applicable. It is fully tax-free amount to her. So you no need to bother. However, any income from such inherited asset in future will be taxable in the hand of your mother.
Yes, you have to personally go to bank and submit the death certificate and all other necessary documents and close the bank accounts related to your father.
Hi Basu first of all thanks for clearing my doubts now one more help i need from you can you please suggest where can we invest my father’s fund money what are the best options and how to go about so that my mother will get monthly income ,How much tax she needs to pay since she is not working and her only income is the interest she will earn on my father’s fund money.Please assist.
You can opt for SCSS or the products like LIC’s Jeevan Akshay VI, where risk is minimal and you can expect the constant stream of income.