Hi My father is having a savings account and a few FDs. He passed away a month ago. I am a joint account holder. I want to transfer all the the amount to my mother’s account in the same bank of which again I am a joint account holder. The issue is that after my father’s death I will be made the primary account holder of the account. Once I pre-close all the FDs then the interest will be shown as income to me. Though I will be transferring all the amount to my mother, how do I avoid tax on the interest from FDs that will be in my name once I am made the primary account holder ?
Till father’s death, the interest income shall be his income. You may obtain interest certificates from the bank for pre and post death period. You may file his tax return including interest accrued as a legal heir.
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