What happens if the first holder of a capital gains bond dies when the account before the death is held by three people but there is dispute in between the other two holder after death of the first holder?
7949RAJ (7 Points)
12 July 2019What happens if the first holder of a capital gains bond dies when the account before the death is held by three people but there is dispute in between the other two holder after death of the first holder?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160332 Points)
Replied 12 July 2019
Nominee can file request to get the balance amount.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 12 July 2019
1. The facility of nomination is also available for sec 54EC bond.
2. In case of the death of individual nominees can register the bonds in their name and receive interest. There are no restrictions on such transfer and interest income earned will be taxable in the same manner as before.
Please correct me if the above solution has an alternative view.
RAM KUMAR GUPTA
(ADJUNCT PROFESSOR AND VISITING FACULTY ON BANKING & FINANCE)
(485 Points)
Replied 13 July 2019
Since joint holders are there, nominee cannot claim the amount at all. Since the first holder has expired, the remaining money will be paid in joint name of the remaining joint holders. (Being three joint holders-one has expired and therefore 2 still remains). These two will also be only trustee of the entire money on behalf of legal heirs of the deceased. The joint holder may be legal heir or not, it depends their relationship. Any confusion, please send a mail to me at rkgupta1949 @ hotmail.com
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
