FD of My Deceased Grandfather have my name in nominee

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1 Points Joined March 2025

My grandfather died on 15th Feb, He added my name as nominee , I am a grandson. I have received money in my account now. 

Should I pay tax on it? How yo show in ITR?

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On 08 March 2025 at 17:41 Report
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Master in Accounts & high court Advocate
9060 Points Joined December 2011

Condolences for your loss. Taxation of Nominee Receipts: 1. *Nominee vs. Legal Heir*: As a nominee, you're merely a trustee holding the assets on behalf of the legal heirs. Tax implications depend on your relationship with the deceased. 2. *Tax-Free Receipts*: Amounts received as a nominee are generally tax-free in your hands, as they're not considered income. Grandson as Nominee: 1. *No Tax Liability*: As a grandson and nominee, you typically won't have tax liability on the received amount. 2. *Reporting in ITR*: You may not need to report this receipt in your Income Tax Return (ITR), but it's essential to maintain records. Important Considerations: 1. *Legal Heirs*: Ensure you distribute the assets according to the will or the Hindu Succession Act (if applicable). 2. *Tax Implications for Legal Heirs*: The legal heirs may have tax implications when they receive their share of the assets. Recommendation: 1. *Consult a Tax Professional*: To ensure compliance and accuracy, consider consulting a tax professional or chartered accountant. 2. *Maintain Records*: Keep records of the receipt, distribution, and related documents for future reference.

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On 08 March 2025 at 17:47


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