I am 82 years old. I recently lost my oldest son who was single. I would like to give the money I inherited from his estate to my three grandchildren from my daughter and my younger son. They are 21, 20 and 14 years old. What are the tax implications for me or my two surviving children in this case?
Amit Maheshwari, Partner at AKM Global, says: “Section 56 of the Indian Tax Act deals with the income to be offset under the heading” Income from Other Sources “, expressly exempting the amount obtained by inheritance or will for tax purposes money earned under the Death of the older son received as an inheritance is tax-free. In the event of further transfer of money to grandchildren (children of the younger son), no tax is levied on the grandchildren or the younger son on the amount that grandchildren received as § 56 is not taxed The amount of money given to a relative as a gift. For the purposes of this section, relatives include grandparents. On the contrary, tax is levied on the amount transferred to the daughter’s children. ”
I regularly invest in the stock market. My trades are always based on delivery. I am a member of a stock advisory firm The company charges a quarterly fee. Please let me know if this fee paid is deductible as an expense from the profits and gains I make on my investments. I am not in the stock trading business.
Raj Khosla, Founder and CEO of MyMoneyMantra.com, says: “If you buy and sell stocks as an investment, the gains and losses under the heading ‘Capital Gains’ are taxable and therefore the stock advisory fee is not allowed as an expense. However, if you buy in selling stocks as a trading activity, the gains or losses are below the Heading “Business Income” taxed. Here, “Consultancy Fee” is a tax-deductible expense. It is therefore recommended that you consult with the person filing your income tax return. ”