Inheritance Planning is another important aspect of a financial plan. No income tax is payable on any amount received or inherited by you, whether in the form of movable assets or immovable assets, consequent to the demise of your friend or relative. Moreover, there is no upper limit to this exemption. Hence, whenever you receive either bank fixed deposit, shares or immovable property consequent to the demise of a person, you don’t have to pay any income tax at all on the value of all inherited assets .The simple rule is that the asset so inherited by you is not your income; it is a capital receipt. Hence you are not liable to pay any income tax on the money and assets you inherit
However, you will be required to pay income tax in subsequent years on any income arising to you from the use of assets you inherit. .
Hence while preparing the plan we need to be aware of a judicious plan of inheritance as well.