• Transfer of FD to Nominee who is wife

Is there a way to transfer Canara Bank's FD to wife, who is also the nominee, after Husband's death without paying tax? The wife is the nominee but does not have a joint account with the deceased. We are looking for options to transfer the FD to the wife without dissolving it, so it is not shown as income just FD transfer to spouse or legal heir after death. Thank You.
Asked 6 days ago in Income Tax

The transfer of FD or its proceeds will not be taxable for wife of the deceased.

 

Lakshita Bhandari
CA, Mumbai
5475 Answers
551 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

There will be no tax liability on said transfer.

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
5084 Answers
157 Consultations

5.0 on 5.0

- The amount payable or paid to the legal heir or nominee of the deceased is not taxable under Income Tax laws in India. It is treated as capital receipt in the hands of legal heir or nominee. As wife is nominee, FD is payable to her only. You can renew the same FD in the same bank or make new FD in other bank. Interest from FD will be taxable in your hands post transfer of FD in your name. Don't forget to show FD amount in your ITR.

- Please check whether there is any income taxable in the hands of deceased. Ensure to file ITR of the deceased and apply for surrender of PAN. You can also cross-check the income from Form 26AS.

Vivek Kumar Arora
CA, Delhi
4079 Answers
346 Consultations

5.0 on 5.0

Not taxable since received under will or inheritance, 

Not taxable since received from a relative

Exempt under both.

section 56.

Siddharthh Jain
CA, Gurgaon
28 Answers
1 Consultation

5.0 on 5.0

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