Me or mom who will pay tax.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 June 2012
Experts, I have 3 question.
1) my father got VRS (and pay tax on lumsum amt recd frm sbi bank in year 2001) without opting pension. After his death in 2005 bank gave a option that if my mother (housewife)wants pension then we have to pay back some amount and pension of mother without commutation will start.we paid that amt and bank paid some lumsum amt on aug.2011 around 150000 as pension arrears assuming (according to scheme)pension start from sept.2010.
Now i wanna know tax treatment of this lumsum pension and monthly pension receiving monthly till now?.
2) we give residential house at rent which is still in name of my late father, i have made a rent agreement with tenent and take rent via my saving bank a/c. I think after father my mother is deemed owner of that house, so rental income should be consider my mother's income & not mine, although rent is deposited by tenent directly to my saving a/c. AM I RIGHT OR NOT?
3) my father gave some amt in cash as a loan (but no agreement or any proof) to some persons and now after death of my father they deposit it's interest in my bank a/c directly. Who will liable for tax on that interest income me or my mother. This loan was out of father's source of income.
Plz reply soon.
Thank You.
1) my father got VRS (and pay tax on lumsum amt recd frm sbi bank in year 2001) without opting pension. After his death in 2005 bank gave a option that if my mother (housewife)wants pension then we have to pay back some amount and pension of mother without commutation will start.we paid that amt and bank paid some lumsum amt on aug.2011 around 150000 as pension arrears assuming (according to scheme)pension start from sept.2010.
Now i wanna know tax treatment of this lumsum pension and monthly pension receiving monthly till now?.
2) we give residential house at rent which is still in name of my late father, i have made a rent agreement with tenent and take rent via my saving bank a/c. I think after father my mother is deemed owner of that house, so rental income should be consider my mother's income & not mine, although rent is deposited by tenent directly to my saving a/c. AM I RIGHT OR NOT?
3) my father gave some amt in cash as a loan (but no agreement or any proof) to some persons and now after death of my father they deposit it's interest in my bank a/c directly. Who will liable for tax on that interest income me or my mother. This loan was out of father's source of income.
Plz reply soon.
Thank You.
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 June 2012
Where is all experts?? Plz reply soon..
03 August 2024
Here's how you can approach each of your questions regarding tax treatment:
### **1. Tax Treatment of Lump Sum Pension and Monthly Pension**
- **Lump Sum Pension Arrears:**
- **Tax Treatment:** The lump sum amount received as pension arrears is taxable in the year it is received. It is treated as income under the head "Salaries" for the purpose of income tax.
- **Taxability:** The amount of ₹150,000 received in August 2011 should be included in the income of the year in which it was received. You should also check if any relief under Section 89 (for arrears) is applicable. Relief under Section 89 helps in reducing the tax burden on arrears by spreading the income over the years to which it pertains.
- **Monthly Pension:**
- **Tax Treatment:** The monthly pension received is also taxable under the head "Salaries." The pension amount received each month should be included in the income of the respective year in which it is received.
### **2. Rental Income from Residential House**
- **Ownership and Tax Liability:**
- **Property Ownership:** Since the residential property is in your late father’s name, the rental income would typically be considered the income of the estate of your late father. However, if the property has legally passed on to your mother, she is deemed the owner.
- **Tax Reporting:** Since the property is now considered your mother’s, the rental income should be reported as her income. It should be included in her income tax return. The fact that the rent is deposited into your account does not change the ownership of the property or the taxability. Ideally, the rent should be deposited into an account in your mother’s name.
### **3. Interest Income from Loan Given by Your Father**
- **Tax Liability on Interest Income:**
- **Interest on Loan:** The interest income from the loan given by your late father should be reported as part of his estate's income. If the loan was from your father’s personal funds and there is no agreement or proof, the interest income should be taxed in the hands of the estate of your late father.
- **Tax Responsibility:** If the loan is considered part of your father’s estate, the tax on this interest should be handled by the estate or passed to the legal heirs as per the distribution of the estate. You should consult a tax advisor or estate planner to ensure that this income is reported correctly and to determine who is liable for the tax on this interest.
### **Summary:**
1. **Lump Sum Pension and Monthly Pension:** Both are taxable in the year received. Lump sum arrears can be eligible for relief under Section 89.
2. **Rental Income:** Should be reported by your mother as the income of the property owner.
3. **Interest Income from Loan:** Should be reported as part of your father’s estate’s income and taxed accordingly.
For precise advice tailored to your situation, particularly considering the complexities of estate taxation, consulting with a tax professional or a chartered accountant is recommended.
### **1. Tax Treatment of Lump Sum Pension and Monthly Pension**
- **Lump Sum Pension Arrears:**
- **Tax Treatment:** The lump sum amount received as pension arrears is taxable in the year it is received. It is treated as income under the head "Salaries" for the purpose of income tax.
- **Taxability:** The amount of ₹150,000 received in August 2011 should be included in the income of the year in which it was received. You should also check if any relief under Section 89 (for arrears) is applicable. Relief under Section 89 helps in reducing the tax burden on arrears by spreading the income over the years to which it pertains.
- **Monthly Pension:**
- **Tax Treatment:** The monthly pension received is also taxable under the head "Salaries." The pension amount received each month should be included in the income of the respective year in which it is received.
### **2. Rental Income from Residential House**
- **Ownership and Tax Liability:**
- **Property Ownership:** Since the residential property is in your late father’s name, the rental income would typically be considered the income of the estate of your late father. However, if the property has legally passed on to your mother, she is deemed the owner.
- **Tax Reporting:** Since the property is now considered your mother’s, the rental income should be reported as her income. It should be included in her income tax return. The fact that the rent is deposited into your account does not change the ownership of the property or the taxability. Ideally, the rent should be deposited into an account in your mother’s name.
### **3. Interest Income from Loan Given by Your Father**
- **Tax Liability on Interest Income:**
- **Interest on Loan:** The interest income from the loan given by your late father should be reported as part of his estate's income. If the loan was from your father’s personal funds and there is no agreement or proof, the interest income should be taxed in the hands of the estate of your late father.
- **Tax Responsibility:** If the loan is considered part of your father’s estate, the tax on this interest should be handled by the estate or passed to the legal heirs as per the distribution of the estate. You should consult a tax advisor or estate planner to ensure that this income is reported correctly and to determine who is liable for the tax on this interest.
### **Summary:**
1. **Lump Sum Pension and Monthly Pension:** Both are taxable in the year received. Lump sum arrears can be eligible for relief under Section 89.
2. **Rental Income:** Should be reported by your mother as the income of the property owner.
3. **Interest Income from Loan:** Should be reported as part of your father’s estate’s income and taxed accordingly.
For precise advice tailored to your situation, particularly considering the complexities of estate taxation, consulting with a tax professional or a chartered accountant is recommended.
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