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?
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?
Nominee can file request to get the balance amount.
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.
yes above all mentions are correct
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
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