What should i do ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2015 Dear experts , Need you advice... In Partition , i have received 20 tola gold and 3 kg silver and 3 lakhs cash . Partition was done amoung all brothers after fathers death . After mothers death , i also got 50,000 cash . there was 10 years gap in my mother and father's death . I hvae made an fd from that amount . Will it be considered as my income or will it be exempted from my income ? I have a partition deed but it was not prepared at that time it was prepared After mother&father's death .

Nikhilesh Kataria

Nikhilesh Kataria (Expert)
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31 January 2015 In either case, the amount is not taxable. If the amount is received in family settlement it is property of HUF of father and is a capital receipts. Asset or cash received is not taxable as any property received in full or partial partition of HUF is not regarded as transfer under the provisions of section 47(i) which deals with capital gain. It will not matter if the partition deed was made after death of the father.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2015 Respected Nikhilesh sir :: Will i have to worry about the source of income of my father ? Will i have to be arrange the receipts to support that cash which i have received in partition . Since i have received cash , it was not withdrawn from bank .... will it matter ?

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2015 Since my father was farmer . They had to deal with cash . We received everything from his personal locker in his room .

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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03 August 2025 Here’s what you should consider regarding the cash and assets you received by way of partition and inheritance:

1. Taxability of Partition Assets & Cash Received
Partition of property among heirs (brothers) after father’s death:
The gold, silver, and cash received in partition are not taxable as income for you. Under Section 47(i) of the Income Tax Act, property received in partition of an HUF is not considered a transfer and hence exempt from capital gains tax.

Cash received from mother after her death:
Inheritance is not taxable as income in India, so the ₹50,000 received from your mother’s estate is exempt.

2. Source of Funds Concern
Since the assets and cash came from your father’s personal locker and it was a family settlement, you do not have to worry about proving the source of your father’s income for tax purposes.

However, if you plan to deposit large cash amounts into your bank or invest (like FD), banks or authorities may ask for source proof. In that case, showing the partition deed and family history can help.

Since your father was a farmer and dealings were mostly in cash, it's understandable to have cash on hand.

3. Partition Deed Timing
The partition deed being executed after deaths of your parents is not a problem. The tax law recognizes partition whether the deed is before or after the death, as long as it reflects the true division of property.

What Should You Do?
Keep the partition deed safely as evidence of the property division.

Maintain records of the inheritance/cash received and the source of funds (father’s property, mother’s estate).

When making bank deposits or investments like FD, if asked, provide these documents to prove the source.

No need to declare these amounts as income in your tax returns.

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