Money received by way of inheritance

This query is : Resolved

Abhishek Roy Choudhury (Querist)
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15 February 2016 Dear Sir,
An assesse had received a certain some of money from his late elder brother. So whether this amount received by way of inheritance can be treated as gift from elder brother.

Please reply as early as possible. Your valuable reply will be very helpful for me.

Thanks,
Abhishek Roy Choudhury.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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16 February 2016 Let us study your problem under the following two heads of income: 1. Capital gains in the hands of your brother / his estate: Firstly...the nature of receipt is capital receipt. Second....though it is a transfer and not directly excluded as gift, will etc. indirectly excluded in section 49. Answer: Your brother / his estate not liable for capital gains. 2. Income from other sources in your hands: U/s 56(2)(vii) ....'inheritance' is excluded specifically from taxable 'other income'. Hence, not taxable in your hands.

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Abhishek Roy Choudhury

Abhishek Roy Choudhury (Querist)
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16 February 2016 Dear Sir,
Actually Income Tax Department asks for compliance from him about the money he received. There are four option related to the matter i.e. 1) Investment/expenditure is out of exempt income, 2) Investment/expenditure is out of accumulated savings, 3) Investment/expenditure is out of gift/loans from others, 4) Investment/expenditure is out of foreign income.

Please suggest which option will be suitable for him for the above query by IT Department.

Waiting for your valuable reply at the earliest.

Thanking you,
Abhishek Roy Choudhury.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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16 February 2016 Ask the assessee to select option 1.

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