Q. Tax implication on investing money received after father's demise

Question

Hello,
My father expired recently. He was still a employee in SAIL. As a nominee, my mother received money accumulated in PF, Gratuity etc (around 50Lacs).

1. Can I use the money received by my mother to invest in MF, Stocks, gold etc, from my broker account?
2. What are the taxes that will be applicable if I invest the amount?
3. Or, is it better to open broker account for mother, and invest through it, in terms of taxation?

I work as IT professional with income of 5Lac.

Regards and Thanks
Pramod
 

Answer 1

Hi Pramod,

1. Yes, you can use the money received by you from your mother for investments in shares/MF/Others.

2. Taxation will be same just like any other investment made by you.

3. Investing in the mother name may be better, depending on whether she has any other source of income or not? If not, then investing in her name is good from tax point of view.