With due respect and humble submission I like to take your kind suggestions on my query as under:
1. That Sir, through succession we the two surviving brothers likely to get bank deposits and marketable securities of equity like shares and MF of our deceased unmarried younger brother who died recently intestate.
Under the above facts and circumstances please enlighten me whether we will have to pay income tax on the money received through succession and how we will show it in income tax return?
Secondly, please inform how we will receive the money from the bank authority or from the depository participant so as to avoid future complications on income tax return. Thanking you.
Ans: There is no inheritance tax in India on the assets that one inherits. However, when a person dies intestate, the income shall be taxable in the hands of legal representatives (in this case you and your brother) after the date of distribution of the income.
Since the person has passed away without a will, all legal heirs (you and your brother) are entitled to get an equal share of his shares and mutual fund units. For this you will need to submit few documents.
It is a good idea for you to approach the respective financial institution for their process of transmission and you can follow it accordingly.