Queries on demise of assessee

Tax queries 148 views 4 replies

Gaurav Mittal

36 Points Joined October 2020

My father unfortunately passed away in Sep'20. I have few queries pertaining to his & mine IT filing for AY 2021-22. I am his legal representative as well as beneficiary of assets.

1) Can I carry forward my father's long term capital losses in equity as I will be inheriting his shares?

2) Some of his fixed deposits will mature in FY 2021-22. So it is okay to continue with them till their maturity in next F.Y. (and accordingly the beneficiary pays taxes) or do I need to close them pre maturely? I am asking this from income tax perspective.

3) Am I eligible to get the same IT deductions as my father since I'm his legal representative? My father was a senior citizen.

4) Does the interest earned in Senior Citizen Savings Scheme qualify for exemption under 80TTB?

5) I am due to receive some refund from a builder through RERA. This will be inclusive of some principal and the rest as interest. Can this interest part be treated as compensation (non-taxable) or will it be treated as income?

6) Ref. point #6, I have not paid advanced on 15th June & 15th Sep as I wasn't sure when the refund from RERA would hit my account. While I have made a payment for advance tax today, will I incur any penalty? I had read online that computation of advance tax to be done only after receiving the income in the account which we're not sure of earlier.

Pls help in replying to the above. Thanks.

Replies (4)

ayusmita

Tax consultant

5895 Points Joined September 2020

1. you can carry forward the loss n set off
2. for maturity or pre maturity see the current interest and the deposit interest rate means if you're father made fd @ 11.5% and now it is 7% it's better to wait for maturity if it's is reversed then premature btw does he make any one nominee?
3. I didn't get your question properly can you more clear means whose return filing you asking
4.yes
5. interest is treated as income and tax is treated as slab rate
6. if advance tax not paid in times then you have to pay interest on late payment.

Gaurav Mittal

36 Points Joined October 2020

Hi,

Thank you for replying. To make some of my queries clearer...

1) With ref. to point #1, u mean that the capital losses incurred by him can be carried forward by me for the next 8 years?

2) Yes, nominee is present but any pre maturity will result in lowering of interest received. So wanted to know from income tax perspective.

3) With ref. to point #3, I mean that he being a senior citizen was enjoying certain exemptions like 80TTB, etc. I had read online that legal representative can enjoy the same deductions. Just want to confirm that.

6) With ref. to point #6, how can one pay advance tax if he is not sure of the income? In my case I wasn't sure if or when I will get the refund containing interest. Only once I received the income in my account, then only can I pay advance tax. So why should interest/penalty be levied, I'm not clear.

Gaurav Mittal

36 Points Joined October 2020

Any further reply to my queries?

ayusmita

Tax consultant

5895 Points Joined September 2020

Hi
sorry didn't saw your reply and as of busy schedule

1.as I don't know from how many years he himself is carrying forward that loss so if for frist time then it goes to you upto the income tax act
2 i didn't get you properly but fd or premature it's interest will be treated as same of the incometax act wise
as per my opinion check as above and take decision it's better to keep upto maturity

3.the legal hire or representive gets the same benefits all the rebates and deduction that the deceased would have been eligible for
6 if you're total tax liability is rs 10000or more in a financial year then you have to pay advance tax

so you calculate your tax liability taking all sources of income and deduction
if you are not sure then wait when you get calculate and pay your tax as per the law