Nominee Claims – Tax Assessment?



Situation: father passed away. Son, an IT assessee receives the following since
he is the nominee. How should they be treated for tax assessment of the son?
Are these seen as ‘gift’ (because of nomination) or, are these to be seen as
additional income?

1. Insurance Policies:
a. Policies are closed and the amounts are transferred to son’s bank account.

2. Bank Accounts/Post-Office accounts:
a. Single holding by father.
Accounts closed and the balance amount transferred to Son’s account.
In some cases the receiving account (son’s) is a joint account with other
members of family.
b. Joint Account, which was primarily operated by father. How does the
balance in such accounts get treated?

3. Fixed Deposits:
FDs on their maturity are getting deposited to son’s account.
How should they be treated for tax – only the interest is to be considered
as additional income, or the entire maturity value?

4. PPF/NSC:
These are being closed and the current value of these are getting
transferred to son’s account. What needs to be considered and included
as additional income by son?

5. Mutual Funds:
MF investments getting transferred to son’s name. Where they were singly
owned with nomination, the funds are closed and current value is credited
to son’s account..

6. Shares:
Shares owned (all Demat) by father transferred to son’s account (Demat)

Nominee Claims – Tax Assessment?
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2 Replies to “Nominee Claims – Tax Assessment?”

  1. In India every income is taxable that goes beyond 2.5lakhs in a year. In your case the tax will be assessed under gifted property. It is additional income in your case. So you have to pay the tax if it is more than the limit of tax exemption






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