Income Tax of my Mother

[Guest]

My mother and my maternal grandfather (Nana Ji) had few joint accounts and Fix deposits(FD) in past. But after his death on 15th July 2015, all the money and FDs (around 19.85 lakhs) got reassigned to my mother. Moreover, in his bequest (vasiyat) he gave his patrimonial house and all money/ property etc to my mother as she was only who is taking care of him from last 30 years.

1: As my mother is full time home maker and is not paying any income tax from last 30 years, is she entitle to pay IT on this money/property ( i.e 19.85 lakhs and house)?

2: My wife and mother are planning to purchase house jointly in Chandigarh of around 50 lakhs.

In this my wife is contributing by 30 lakhs+my mother is contributing 20 lakhs( my sister is giving this amount of 20 lakhs to my mother from her USA account). Will my mother also has to pay IT on this 20lakhs?

3: Does my mother has to file IT return for FI Year Apr’14- Mar’15 and also for the next year

[Ganeshan Kalyani]

I understand from the query, that mother will earn interest on the money in the account and on FDs. Therefore she will have to file IT returns provided interest amount goes beyond taxable limit. Further to clarify the amount of ₹ 20 lakhs received by your mother from your sister who is abroad would not attract tax. Also, purchasing house property will not attract any tax. This is my view. I expect other experts to share their opinion.

[Ganeshan Kalyani]

You may refer Issue Id: 109335 dated 26.10.2015.

[DR.MARIAPPAN GOVINDARAJAN]

Repeated query. Please avoid such type of queries.

[Guest]

First of all Thanks for my answer, I am new in this website so I am not aware that this is a repeated question.

My second question is

My life wife sell her shop worth ₹ 30 Lacks and we are planning to purchase new flat in chandigarh jointly with the name of my mother & my wife. (my sister is giving this amount of 20 lakhs to my mother).

Question is

1. As per income tax rule is it ok to purchase this property on joint name?

[Ganeshan Kalyani]

To be honest you should engage a consultant. There are well qualified and experienced adviser in this TMI. Thanks.

AI Summary

Inheritance and Gift Taxation: bequests and family transfers are not taxable receipts, but subsequent interest may be taxable. Bequests and reassignment of bank balances and immovable property on death are not taxable as receipt; interest earned thereafter is taxable if it causes total income to exceed the exemption limit and may trigger a filing obligation. A gratuitous transfer from a family member abroad is treated as a non-taxable receipt for the recipient, and purchase of residential property with those funds is not itself a taxable event, though future income or transfer consequences may attract tax.