Tax liability for nominee of PPF diseased account

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kishore K (Querist)
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05 September 2021 Dear Experts

I was the nominee of PPF account of my maternal uncle (Mother's real Brother) who was a bachelor. I received a sum of 55 lac after his death last month. I have 2 queries in that regard, need your advise please.

1. Tax liability on me on the amount received.
2. If I transfer the amount to my mother's account ( I believe she is a default legal heir), Tax liability on her.

Kindly help.

Thanks !!
Iyer

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 September 2021 1. Nil
2. Better to make Gift deed between you (as Donor) and your mother for the same amount, with Bank transfer. No tax liability over anyone.

kishore K

kishore K (Querist)
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07 September 2021 Thank you sir for the guidance, appreciate your help.
As a nominee, do I have to show this in the exempt income under inheritance.
And if there is any query from assessing officer, will I be required to prove the relationship as well, could you please guide on these well. Thank you so much for your time.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2021 1. Yes declare it under 'Exempt Income.' It is exempt u/s. 56(2)(x)(c)(III) of IT act.
2. Just keep the death certificate and pass book of the PPF account declaring yourself as nominee; as proof.

kishore K

kishore K (Querist)
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19 September 2021 Thanks a lot sir for the guidance !!

Regards
Iyer

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 September 2021 Most Welcome..

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