Hello sir, In Fy year 2022-23 , i have received rs 23 lakhs after my father `s death from his time deposits and i have invested this amount in term deposits in bank. In my income tax department`s user ID under AIS tab, department seeks asking me about feedback , under TIS i:e Purchase of time deposits, should i give optional feedback source is reciept of gift , which isn`t taxable?

Ans: I'm sorry for your loss. Dealing with financial matters after the passing of a loved one can be challenging. Here's a simplified explanation of how you can handle this situation:

1. Filing Tax Return for Your Father: As per the Income Tax Act in India, the legal heir is responsible for filing the income tax return on behalf of the deceased person. This return should include the income earned by your father until the date of his death, which includes the Pension, FD, SCSS, and Mutual Fund incomes. If the total income is below the taxable limit, you can claim a refund for the TDS deducted.

2. Interest Earned After Death: The interest earned after your father's death on his investments (like FD, SCSS, and LIC) is considered your income. You should include this in your income tax return and pay the necessary tax.

Remember, to file your father's return, you need to register yourself as a 'Legal Heir' on the Income Tax website.

Ans: Amount received from relative (father) is not an Income and hence, not taxable.

Ans: The income tax in India is paid on accrual or receipt basis whichever is earlier. In case of 1 and 2 you rightly pointed out that since they are received you will pay taxes. As far as FD is concerned, the interest is taxed on accrual basis every year on which TDS is deducted. Hence, every year you will need to show the respective interest in your income tax returns and at maturity only differential interest will be paid.

For eg. FD of INR 100 @10% is made for 3 years then year 1 on 10 rs you will be pay tax. In year 2 you will be tax on 11 rs and year 3 you will tax on 12 rs and upon maturity there will be no taxes since entire interest is paid in the respective years.

Hope I am able to articulate this properly.

Ans: Hello, as per the data given , nothing seems to be taxable as its all below the taxable limit

Ans: Yes return needs to be filed
No limit on gift received from relatives as per the income tax definition , but make sure the money received as gift is tax paid money by the person who is transferring it to you