Savings account closure proceeds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2012 My father and I had a joint savings account. The savings account mostly had my father's retirement savings.

On death of my Father few months back, I had to close the savings account.

The plan was to transfer the entire amount from the above savings account into my Mother's new savings account (New account since my mother didn't have any savings account on her name till then).

As the account opening for my mother was in process, the closure proceeds of the above savings account (my father's and mine) was transferred to my savings account.

Few days later when my mother's account opening process was complete, I transferred the entire above closure amount into my mother's new savings account.

I have two queries on the above, if anyone could help.

1) While filing my income tax return do I need to declare the above amount as gift from relative (my father in this case)?

2) Or I need not mention anything in my IT return and my Mother can declare it as gift from spouse while filing her IT return?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 February 2012 After the death of your father, the amount can be said as received in inheritance or succession and as such it need not required to be termed as a gift. It can directly be credited to the capital of your mother.
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In your return , you need not to show the transaction as on whose behalf the amount was tfd. to your account, you have discharged merely, the obligation to give her back.
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Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2012 Thanks Paras.

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