Interest income of expired person

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2018 Sir,
My mother has expired a few months ago. She had some bank fixed-deposits which will mature in the coming 2-3 years. I am the joint holder in these deposits. Please clarify the following :
1) Can I continue the deposits till maturity ?
2) If yes, can I file Income-Tax Returns of my mother as a legal heir, and claim refund of TDS deduced from the interest of the fixed-deposits ?
3) Can I add interest income of above deposits to my income, show it in my Return and pay tax according to my income slab ?
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 October 2018 1 Yes you can continue the deposit till maturity.
2 yes. Show interest till date of death.
3 yes.

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2018 Dear Sir,
Thanks for your reply.
1) While filing my mother's Income-Tax Return for next financial year, should I show my mother's interest income as zero (she has expired in this financial year) ?
2) How to do this when banks are reporting interest income on my mother's name in form 26AS ?
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 October 2018 1 No need to file ITR.
2 With legal heir certificate ask banker to change your name in 26AS.

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2018 Dear Sir,
Banks are not ready to delete my mother's name from the fixed-deposits. They are telling me to do one of the following :
a) close mother's deposits and make new deposits on my name, which I don't want to do as mother's deposits are at a high interest rate.
b) allow my mother's deposits to continue till maturity. But if mother's deposits are continued, the banks will report interest income on mother's name and also deduct TDS on mother's name.
So what is the legal way to continue the deposits on my mother's name and also get refund of TDS deducted on mother's name ?
Please guide me.
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 October 2018 Deposit held in joint names so continue deposit in your name and TDS in your name is no problem check with your bankers.