Dear Friends
Unfortunately my Co Brother working in a private co. in Delhi passed away at the age of 41. He left behind wife and two daughters. Employer, in addition to contractual dues has decided to give two fixed deposits of Rs. 11 Lac each to both the daughters. They are minor & mother will be guardian. No letter is given by employer to this effect but FD certificates are physically handed over to wife of deceased employee.
Pls let me know whether the amount of FD (11X2) ie. 22 Lacs is taxable in the hands of wife. Is there any way that tax can be saved on this receipt. It will be harsh on a house wife if tax is to be paid because she don't have any other souce of income in future.
Pls respond as it will e of great help.
Regards
CAclubindia
