Tax on money transferred to survivor before death

1. The income from the FD matured will be taxable in your father's hand. Any income earned upto the death of the person is chargeable in his own hands and not the legal heir. Post death , the income will be chargeable to tax in the hands of the legal heir.

2. In case your father is liable to file Income tax return for the relevant year , then you will have to file Income tax return as a legal heir. 

3. Return is generally filed if there is tds credit or gross income more than basic exemption limit and mandatorily to be filed if assessee has any foreign asset or a signing authority in any bank account.

4. The tax liability if any will have to be paid by the legal heir. However , tax liability shall be limited to the amount of assets inherited.

5. For filing the return , you will have to register yourself as a legal heir from your income tax account itself. Upload the requisite documents and wait for the department to approve. ( Consult your local CA for professional and proper guided service )

6. The legal heir certificate may or may not take time depending upon your siblings and quick or lag in the distribution of assets. This is the most important thing.

I wish things be taken practically though my deepest condolences with you.

Warm Regards 

Raj C Doshi 

Thanks a lot for your advice, Mr Doshi

Some additional information - That FD was invested under the MIS scheme of SBI earning a monthly interest of around 3.6k only. TDS was deducted from interest credited as form 15H was not submitted for his account. The MIS was the only source of income from him. He was 71 when he passed away. 

Does this change the tax liability on him or me? 

Many thanks, once again

Sure

Thanks