Under section 56 of the Income-tax Act, any money received by an individual from a person during any fiscal year (FY) without consideration, the aggregate value of which exceeds Rs.50,000, is taxable under the head “income from other sources”. However, an exemption could be availed if the money is received from a relative, which includes among others, any lineal ascendant or descendant of the individual. Accordingly, the money received by you as a legal heir shall not be taxable. You will have to prepare documentation with respect to your claim as a legal heir. Any interest earned on the money placed in the bank account shall be taxable in your hands as per the income-tax slab rate in which you fall.
What are the documents required for transfer of asset ?
Documents required for transfer depends on type of asset, joint ownership, nomination, will. Usually the documents required , at times notarized, maybe :
1.A copy of the Death Certificate.
2.A copy of the Succession Certificate or an order of a court of competent jurisdiction where the deceased has NOT left a Will
3.A copy of the Probate or Letter of Administration.
a)Probate is a legal process in which the court certifies the authenticity of the Will.
b)Letter of Administration is issued by a competent authority (court) and appoints the Administrator to dispose of the property of a person. It is required when :
1)Testator has failed to appoint an executor under a Will OR
2)Where the executor appointed under a Will refuses to act OR
3)Where executor has died before or after proving the Will but before administration of the estate.
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