Mother's Tax liability

This query is : Resolved

Anjana (Querist)
Follow

27 February 2010 Hi,
I have a question regarding taxpaying. I have lost my father last October 2009.He was a retired person and he filed his return (thought he had no tax to pay).

Now with his sudden demise,my mother has received a lumpsum amount of Rs 1.5 lac from LIC Varistha Bima Yojana & an amount of Rs 1.09 lac from Employees Provident Fund & now she receives a regular income of Rs 545 as monthly pension from EPF.Other than this she receives some minimal amt as dividend from shares which are in the name of - [a]my father only [b] my mother & my father both.

My Mother is a housewife.And now with my father's demise will she be required to pay tax?If her income is taxable for this year & then not taxable in the next year then does she still hve to file return next year also. Will the 2 lumpsum amt that she has received from LIC & EPF be taxable? Is there any manner by which I can save tax ( as she is financial not strong)?Please suggest some investment option for her keeping in mind that she has a studying son(for which they may need maney soon) & a married daughter(ie me). I have heard some investment option-

[a] MIS - but there the money will be for 6 yrs & penalty will b there if I withdraw before 6 yrs but MIS is exempt from tax?

[b] FD - but it is not tax exempt?

I need to know about investment that will not have a long duration & also be tax exempt.

I will be highly grateful if someone reverts me back with suggession as I am totally confused.

Thanking you
Anjana

Anjana

Anjana (Querist)
Follow

15 March 2010

Anjana

Anjana (Querist)
Follow

15 March 2010 m

Guest

Guest (Expert)

16 January 2011 I don't think that your mother is getting substantial income for taxation. Income on account Insurance policy and PF etc. are not at all taxable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now