Deceased father

[NARASIMHAMURTHY JR]

My father passed away recently. My mother will receive sb account proceeds and family pension. She is also joint holder of a house property owned by my father which she intends to sell.

How to file income tax returns of my father. My doubts as below

1. How to show the income received by way of amount received from my father's sb account in the returns of my mother

2 how to show the family pension amount received by my mother in the returns

3 how to show the proceeds from sale of property in the returns of my mother

Thanks in advance

[PRIYACHARAN SR]

1) How to show the income received by way of amount received from my father's sb account in the returns of my mother - Register urself a legal heir and report ur father's income till his date of death as legal heir. Registering as legal heir involves submitting documents such as the death certificate, PAN card of the deceased, and proof of legal heirship. Upon approval by Income tax authorities you will be enabled as legal heir.

2) how to show the family pension amount received by my mother in the returns -  Family pension received by your mother is taxable under the head "Income from Other Sources." She can claim a deduction of one-third of the pension amount or ₹25,000, whichever is less. Bank proceeds received upon death of spouse is exempt as it is treated as inheritance proceeds.

3) how to show the proceeds from sale of property in the returns of my mother - If the property was held for more than 24 months, it will be treated as long-term capital gains (LTCG) and taxed at 20% with indexation benefits or 12.5% without indexation whichever is beneficial. If held for less than 24 months, it will be treated as short-term capital gains (STCG) and taxed at the applicable slab rate. The capital gains should be reported in your mother's income tax return under the head "Capital Gains." She can claim exemptions under Sections 54 if she reinvests the proceeds in specified assets within the stipulated time

Disclaimer: These are ex facie views of mine and the same should not be construed as professional advice / suggestion.​​​​​​​

[NARASIMHAMURTHY JR]

Thank you Sir 

AI Summary

Guidance on Filing Taxes for Deceased: Legal Heir Registration, Family Pension Tax, Property Sale Gains & Section 54 Exemptions. A user inquired about filing income tax returns following the death of their father. The queries focused on how to report income from the deceased's savings account, family pension received by the mother, and proceeds from the sale of jointly held property. A respondent advised registering as a legal heir to report the deceased's income and explained that family pension is taxable under 'Income from Other Sources' with certain deductions. For property sale proceeds, the respondent detailed the tax implications of long-term and short-term capital gains and potential exemptions under Section 54 for reinvestment.