Nominee and Other legal heir in bank account

[User_28530830]

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User_28530830
PARTICIPANT
February 23, 2025 at 2:48 pm

My parent who recently left us,had a bank account in which I am nominee.

I will go to bank to claim those funds

Will bank directly transfer funds to me as I am nominee/legal heir(son) or as I have younger sister they will ask for her also?

Also is that amount taxable?
If then can me and my sister divide amount to reduce tax buden?

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[Superjeevan1561]

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Superjeevan1561
PARTICIPANT
February 23, 2025 at 2:53 pm

Hi Advocate and ex-banker here.

Your Bank will transfer the money to your account as a nominee after completion of necessary documents.

As a nominee, you are trustee of the funds received and she is entitled to 50% of the funds.

Yes once the amount enters your account and you gain interest from it or invest in the stock market (profit/loss) etc. will be used to calculate the tax burden at the end of the year.

I suggest you use a CA to guide you on this and once you stabilise your financial situation then you can plan ahead.

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[Prakashtiger378]

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Prakashtiger378
PARTICIPANT
February 24, 2025 at 12:23 am

NAL, yes, since you are a nominee all funds will get transferred to your account. Once it is transferred you can divide among yourself and your sister.

Also there is no tax on the amount itself but the interest gained from the amount will be taxable as per income tax slabs.

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