If your father’s deposit or shares are received, then no tax will be payable on your behalf. But this exemption is only till the time you keep that property, share, money or wealth with you. You will have to pay tax on selling it.
There are issues related to many people like inherited property, money and shares etc. It happens that a person invests money in bank account, fund, shares, FD-RD scheme while living. Buys property in his own name in life but is unable to make a will in time and leaves the world. In such a situation, if he has a wife, then he gets the right to property. Also Read: Broadband Plans: Airtel, JioFiber and BSNL, will get 200 Mbps speed under Rs1000
If there is no wife, then its share is divided among sons and daughters. If the sons and daughters are of consent, then there is no quarrel of property. Otherwise, many times the matter goes to the court. Those who have such a situation with them, they should know the rules of income tax. Also Read: BSNL Released Broadband Plans For Rural Areas; Offering 80 Mbps Speed
In the rules of income tax, you will be able to know that if your father has left behind a huge legacy, if you have many siblings, then what will be the income tax liability. How to show it in Income Tax Return? How to pay tax so that there is no hassle of notice. BSNL Offering 730GB Data For 365 Days, Know Plans
It has a clear rule that if a person gets any property from any other person (relative or non) as heir or will, then it will not come under the tax net. Its clear rule has been given in section 56 of Income Tax. That is, no tax will be levied on money, wealth or property received by way of inheritance or heir.
No tax on father’s property
Accordingly, know that if your father’s deposits or shares are received, then no tax will have to be paid on your behalf. But this exemption is only till the time you keep that property, share, money or wealth with you. As soon as you sell that property, then the income earned on it automatically comes under the tax net. Any immovable property of the father that you sell is considered your value as it is now in your name.
In such a situation, this earning will come under the purview of capital gains. Check your tax slab and know how much profit is being made after indexation. Then tax will have to be paid accordingly. If there is a bank balance or a deposit, then there will be no tax on it. But on the sale of immovable property, tax will have to be paid.
When tax has to be paid
Under HUF, the karta has to pay tax. If many people have rights over the property of the father, then all the shareholders will have to pay tax on selling the property. An example Let us assume that there is a property in which four brothers have a stake. This property is not yet divided, so the question is who will have to pay tax on selling the property.
The rule in this is that even if the property is not divided, but if there are four brothers, then the tax will have to be paid by dividing it into four parts. The amount received on the sale of that property, will be divided into four equal parts by 4 brothers and shown in the income tax return. That is, the four brothers will have to pay tax in equal share. It will not put all the pressure on any one brother.
Will have to pay equal income tax
In the end, if you want to understand the rule of tax in one line, then it is that if four brothers keep property, bank balance, shares, FD or immovable property inherited from their father, if they do not sell it, then no tax liability will be created. . But if the same property is sold, then the earnings on it will come in capital gains. The four brothers will have to divide these capital gains into 4 parts and pay tax and give information in ITR.
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