My father has left a Will in which he has bequeathed a house and some investments in bank deposits in my name as a first holder and in my mother's name as a second holder, also stating that after my mother's death I will be the sole inheritor of both properties. I am an income tax assessee, but my mother is not an assessee. As my mother is over 70, I would like to declare to the Income Tax Department that I include both properties as part of my possessions and bear the tax incidence completely. This would save her the bother of having to fulfill tax-related formalities. I also wish to avoid any clubbing of income. Is this permissible as per the income tax rules?
Since you are the first holder and a major, you could show the entire investments and properties in your books. However, to the extent your mother has income rights over these assets, they need to be shown only in your mother's books. As otherwise she would be subjected to taxation to the extent of her share of income. Clubbing provisions cannot be applied in this case since both are majors and would be subjected to taxation separately.
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Income clubbing permissible icome tax rules
by cherry » January 8th, 2010, 1:00 am
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cherry - Posts: 118
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