I have inherited a property from someone in my family. Is there a taxation element involved?


#1

I have inherited a property from someone in my family. Is there a taxation element involved?


#2

As a general rule, the income tax act of 1961 does not seek any tax obligations for inheriting any property or financial instrument from the deceased. Only in case of any sale proceeds or gains earned from the inheritance does the income tax becomes liable for the individual tax payer. You will however need to transfer the property in your name and pay the normal stamp duty and registration charges applicable.


#3

How much TDS does a bank deduct of a fixed deposit?


#4

Banks will deduct TDS only if the aggregate interest income is more than Rs. 10,000 in one financial year. Tax deducted at source for fixed deposits interest is calculated as at 10% plus 3 per cent education cess. Your bank will therefore deduct 10.3 % of the interest earned as the total deduction as TDS. If you are a senior citizen with income below the taxable limit for the financial year you can submit FORM 15H with your bank to avoid TDS deduction.


#5

Hi Sohini,

If you have received property as an inheritance then there usually will not be a taxation element involved. However, if you sell the property later at a profit then you will be liable to pay capital gains tax.

Looking for a tax-saver Mutual Fund? Click here.

Cheers,
Team BB