Tax on nominee

Querist : Anonymous (Querist) 12 June 2021 This query is : Resolved
I am the nominee in mutual fund account and properties, where I have will also, executed by my deceased uncle.
My question is:
will this be taxable at my hand or exempted. ( I am salaried working in India)

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kavksatyanarayana (Expert) 12 June 2021
You are only the nominee but not the owner. Nominee is the custodian of the property either movable or immovable. So you need not shown them in IT.

T. Kalaiselvan, Advocate Online

(Expert) 13 June 2021
Nominee cannot claim the title to the properties to which he had been nominated, he can receive the properties on behalf of the legal heirs of the deceased and to distribute to them later on.
If the properties have been bequeathed through the will in your favor, you can enforce the Will and acquire the property.
You do not have to pay any tax for the properties acquired through a Will.

Dr J C Vashista (Expert) 13 June 2021
I endorse the analyses, opinion and advise of experts.
Nominee is not the owner but an agent of the actual beneficiary for calculation of tax liability.

Advocate Bhartesh goyal (Expert) 13 June 2021
Being a nominee, you are not liable to pay tax.Its beneficiaries who are liable to pay tax.

Sankaranarayanan (Expert) 13 June 2021
Yes I do agree with experts. The question of capital gain will raise only the time of sale of such mutualfunds. That also vary subject to short term or long term .as for as proprty concern no question about tax that also only subject during sale

Querist : Anonymous (Querist) 13 June 2021
Thank you ji,
I understand that I need not pay tax on acquiring the shares/mutual funds or properties... but
Do I have to pay tax on profit on sale of mutual funds/ shares/properties and
the rental receipts from the properties...?

Sankaranarayanan (Expert) 13 June 2021
Yes absolutely

P. Venu (Expert) 13 June 2021
Yes, as the nominee you are only the trustee and the funds do not belong to you. What exactly are the terms of the Will?

Querist : Anonymous (Querist) 13 June 2021
will is clearly says that I am the absolute owner/can have possession of the funds/property.

Sankaranarayanan (Expert) 13 June 2021
Even the WILL can be possible to chellenged by other legal heirs

Querist : Anonymous (Querist) 13 June 2021
thank u ji.. but no one is legal heir.. of the deceased is unmarried bachelor. and the "will" is executed in my favour to own and possess..!! the doubt is on taxation part

Sankaranarayanan (Expert) 13 June 2021
No need to worry about tax at this stage. Iit will computate only the stage of sale

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