Fixed deposit

Dear Sir,

1) File ITR as legal heir of your grandmother atleast for two Assessment years (2017-18 and 2018-19). In all these 10 years, TDS was deducted and no return was filed. Now you need to obtain permission from the department to file ITR of previous years because TDS was deducted and no one claim the credit of such TDS amount. If you want to claim it the you need to meet her jurisdictional AO. Check if any notices have been received for non-filing of ITR of your grandmother. No need to show this deposit in your ITR as FD amount is capital receipt in your hands. Only interest will be taxable in your hands as per the slab rate.

2) If you have submitted yours PAN details in bank then bank will deduct TDS on your PAN for which you needs to file ITR (for FD interest) each year. You need to file ITR on yearly basis and not only at the time of maturity of FD because FD interest is chargeable to tax on accrual basis and not on receipt basis.

3) Yes you can open FD on your single name after receiving the maturity amount.

4) ITO will ask from you only about the source of FD in your hands.

5) To file ITR of your grandmother you need to obtain legal heir certificate.

Thanks

Dear Sir,

1.Since the F.D. is in the name of either or survivor the F.D. belongs to you and you are assessable from the income generated from that asset,as per the Income tax Act.

As the F.D. belongs to you the interest earned on fixed deposit should be added to your income. The TDS if any should be deposited by the bank in your PAN during A.Y.2019-2020(F.Y.2018-19).

2. In earlier years, since your grandmother didn't have any other source of income as suggested by you her income was below the taxable limit (1,90,000 which is 9.5% of 20,00,000). Hence there is no loss of revenue on part of income tax. However you could have filed returns and claimed the TDS as refund.

3.A.Y. 2019-2020 onwards Rs.1,90,000 shall added to your total income under the head Income from Other sources and tax liability shall be determined based on your net total income i.e. post availing deductions under chapter VI A like LIC,PPF,Mediclaim,donation etc.

4. You can open the F.D. in your own name after the current F.D. is matured.

Your tax liability can be ascertained only when the your total income is known to us.

5. The Income tax officer's may question you but since it is inherited to you from your grandmother and she inturn inherited from your grandfather, you can show them the proof of FD's alongwith the death certificated of the deceased assessee's(Grand mother and grand father).

Hope all your queries are resolved.

Hi,

Hope you are doing well !

1. Interest earned on fixed deposit should be shown as Income form other sources in your I.T returns for the

assessment year 19-20 (financial year 18-19) and tax liability shall be determined based on your net total income.

2. Now, you can file her returns for F.Y. 2017-18 & F.Y 2018-19 and claim refund accordingly.

3.Yes, you Can open F.D on your single name after receiving the matured amount from F.D.

4. Yes, Income tax officers may ask the source of income . You can show the F.D. as a proof along with her death certificate .

5. Also, please get your legal heir certificate asap.

Thanks & Regards,

Payal Chhajed

For assessment year 2019-20, you will show this income as exempt income in return of income. It will be income from inheritance. There is no tax liability on you.

Income tax department may ask questions and then you will have to explain the case to income tax department. However, likelihood of getting a scrutiny is very low.

Hi,

1. Show the Interest as Income form other sources in your I.T returns for the

assessment year 19-20 pay taxes as per your slab rates.

2. File your grandmother's return as a legal heir for FY 2017-18 and FY 2018-19 and claim refund accordingly.

3.Yes, you Can open a new FD in your name.

4. For you they may ask for which you have the FD to show the source. It is less probable that they will ask for the source of income of your grandmother.

Hope that clarifies. You can get in touch dor further clarifications.

Regards,

Nikhil

Hi,

1.You have to declare this as Exempted Income.It will be tax free in your hands .

2.In case of any inquiry ,you can show documents like FD maturity receipt,her death certificate,your legal heir

certificate(succession certificate).

3.yes you can make FD in your name ones maturity receipt is in your hands.

Hope it help