Regarding your query,
YOU QUERIES: 1. Is money transferred to my account by my grand father taxable in my hands?
Ans : No any amount received as Gift from a relative is not subject to tax.
2. If taxable how much to pay and how?
Ans : Not taxable, hence fictional.
3. Since it is a gift is there need to show documentation or make a gift deed?
Ans : Yes, you may be asked to prove the source of fund appearing in your bank account and for that purpose you may need a documented evidence. It is there-fore advisable and better to have a Gift deed executed in the presence of witnesses.
i am 18+
REPLY: 1. No, if the GF is your lineal ascendant;
2. Depending on the 'slab' (10%/20%/ 30%) in which you are taxable.
3. No gift deed as such is necessary for a movable property; however, better have a 'Confirmation Letter' from the donor.