By Amit Maheshwari
l My uncle died a year ago. I am the nominee for all his financial assets. Most of the money is gifted to a trust as per his will. Do I have to file income tax returns? What should I do with some bonds which will mature after 10 years?—Kapil Verma
As per Section 159 of the Income-tax Act, 1961, when a person dies, their legal representative becomes responsible for filing the final income tax return for the period from the start of the financial year up to the date of death and pay any tax, interest, or penalty that the deceased would have been liable to pay had they lived, but this liability is limited to the value of the deceased’s estate. Transfer of capital assets through a will or inheritance is not regarded as a transfer for capital gains tax purposes. So, when the bonds are inherited, no capital gains tax arises.
l I have paid advance tax on the salary for FY 24-25. My AIS is showing interest income from bank deposits and rental income also this time. Should I pay some additional tax now or do it at the time of filing ITR in September?—Avinash Singh
Advance tax must be paid if your total tax liability after reducing TDS exceeds Rs 10,000 in a financial year. It applies to all incomes including salary, interest, rental income, and capital gains. If you have additional income (like interest or rent) beyond salary, and the aggregate tax on such income has not been fully paid as advance tax, pay the shortfall to avoid interest as such interest is levied full even if there is delay of part of the month. Pay this as soon as you estimate a shortfal. Do not defer it to the time of filing ITR.
l I had inherited a property from my father 10 years ago, which he purchased in 1950. Now I want to sell it. How will I calculate the capital gains?—Keshav Nath
Since the property was acquired by your father before April 1, 2001, the cost of acquisition for capital gains purposes will be either the actual purchase price paid by your father or the fair market value (FMV) as on April 1, 2001, whichever is higher. For inherited properties, the period of holding includes your father’s period of ownership, so the asset qualifies as a long-term capital asset (held for more than 24 months). LTCG on property is now taxed at a flat rate of 12.5% without indexation. However, taxpayers who purchased or inherited property bought before July 23, 2024, may opt to pay 20% tax with indexation benefit if it results in lower tax liability.