piknoo (none) 19 June 2011

Nominee amount to HUF

My father passed away in Jan 2011 and as per the nominations made by him in his bank account /FD(individual) the amount is to be given to me.I want to ask whether I can tranfer the amount so received through cheque from bank (as myself being the nominee) to my HUF account for which I am the Karta.It may be noted My father also left a will in which all the money is to be given to me.What are the tax implications????

Reply Follow

2 Replies

Ambika Prasad Mishra (Lawyer) 20 June 2011

Since you are the nominee you can withdraw it in anyway you please. So far tax is concerned,properties or money recieved through will are not subject to taxation. But I doubt whether such a will can validly convey the money in your favour, as the money sought to be conveyed through will is Joint family property. What a person can convey through will is his share in the joint family property not the entire joint family property.

1 Like

piknoo (none) 20 June 2011

THANKS FOR YOUR REPLY. YOU ARE VERY CORRECT TO SAY THAT THE WILL HAS BEEN MADE TO THE

JOINT FAMILY(TWO BROTHERS AND MOTHER, BOTH MAJOR MARRIED AND MOTHER) AND I BEING THE SOLE NOMINEE, HAVE TO DISTRIBUTE THE MONEY SO RECEIVED TO ALL THE FAMILY MEMBERS AS PER THE LAW, SINCE "WILL" PREVAILS OVER THE NOMINATION.

MY QUESTION IS WHETHER THE AMOUNT SO RECEIVED IS MY HUF INCOME OR INDIVIDUAL INCOME.CAN IT BE TRANSFERRED TO KARTA ACCOUNTS OF MY BROTHER AND ME.

THANKS IN ADVANCE