tax querry

As per my knowledge the amount which was received from ur grand father to ur father is not taxable for ur father but interest on that amount will taxable for ur father.

Hi Mukund,

The transfer of account in the bname of your farther does not attract any tax since it is under normal succession Act

As regardsliability to tax under normal circumstances,, as a CA student you ought to know that the Taxable marginal limit in vogue is 1.6 lakhs for individuals.  Apparently the interedst cannot earn interest to such an extent, especially when you say the interest the deposit carries is only 6.5%.There is, therefore, no liability to tax on this score also on the interest, if anay generated farom out of the said deposit.