Hi Sreekanth, Need your guidance. From Income Tax perspective, how the Fixed Deposits in the name of Father if credited to children account on account of demise of FD account holder how it would be treated.
Regards,Manoj
1 Answers
Dear Manoj,
The interest income earned on FD before the demise of Father, is taxable in his name for the concerned Financial Year.
After the demise and inheritance of FDs, the legal heir(s) who inherits the FDs have to pay taxes (if any) on the interest income.
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