Reporting inherited property and income on tax return
Raj
(Querist) 08 July 2017
This query is : Resolved
If someone has inherited property and money (bank deposits) as legal heir via court issued Succession Certificate, does this inherited property and money need to be declared in the India ITR filing for that year?
Thanks,
Rajesh
Rajendra K Goyal
(Expert) 08 July 2017
Income received on such property need to be shown / accounted in IT return.
Hemant Agarwal
(Expert) 09 July 2017
1. IF legally inherited property is not declared in the personal income tax returns (ITR), THEN such property shall be termed "benami" and criminally prosecute'able, AT the time of sale of such inherited property.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Raj
(Querist) 09 July 2017
Thank you for your responses. I want to reconfirm that the event of acquiring property through inheritance does not have have to reported on the tax return. I understand that when this property is sold, it should be reported. Please confirm that my understanding is correct.
Thanks,
Rajesh
Dr J C Vashista
(Expert) 10 July 2017
Yes, it is required to be declared in ITR.
Hemant Agarwal
(Expert) 11 July 2017
Raj (querist) :
In lieu of your last "twisted" query, kindly prefer to RE-READ my above simple english opinion, this time very "S-L-O-W-L-Y", and ONLY THEN reconfirm /understand it.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Raj
(Querist) 15 July 2017
Thank you for your follow up responses. If inherited property has to be shown on the tax return in the year of inheritance, I would like to ask where in the ITR2 form this has to be done. In this case, there is no income from the property (it is locked up) hence the HOUSE-PROPERTY schedule does not apply. I do not see any category in Schedule OS to report inherited property. Schedule AL also does not apply since the person's income is well under the Rs 50 lakhs criteria.
Thanks,
Rajesh
