I am a retired bank employee drawing regular pension. I am an assessee, filing returns regularly, and I am now 76 years of age.

About five months ago, my wife aged 72 years, passed away after a brief illness. As the nominee of her bank accounts, I received about ₹25 lakh into my account. I will also be getting some shares held by her, valued at about ₹5 lakh into my demat account being opened for the purpose. So far, except pension, I had no other income. Now I will be getting interest on her term deposits and dividends on shares.

Kindly advise me how to tackle the new incomes from the IT angle.

Durgananda Swamy

Any income that had accrued until the date of death would be taxable in your wife’s hand. Tax return would need to be filed for your wife’s (under her PAN) by legal heir / legal representative. The return can be filed by you as her legal heir. Documents (such as your wife’s PAN card copy, your PAN card copy, legal heir certificate, death certificate, etc) need to be submitted in the income tax portal to register you as her legal heir / legal representative filing her tax return on her behalf.

Income from the shares (such as dividends) and from deposits (interest) would be taxable as income in your hands from the date of her death. You would need to include them appropriately in your tax return while computing your total income and tax for the relevant financial year.

The writer is Partner, Deloitte India  

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Published on December 21, 2024