A common man always has tax woes and sometimes is in a fix as to whether he has to pay tax on the money that he has or whether he can claim benefits on something and so many other issues. However, the best way to get the tax queries sorted out is to seek the guidance of a tax expert.
One such query that most tax payers have is whether there is any tax payable on mutual funds inherited. The answer to this is no. There is no tax on the mutual funds that are inherited however whatever income is gained out of such mutual funds is taxable. This means that whatever interest is earned on the mutual fund or whatever gains are made after selling the mutual fund, such amounts are taxable. The amount of the tax will depend on the kind of gain and the amount of the gains. Hence, inheritance by itself does not lead to any tax liabilities, but gains from such inheritance do. The only immediate liability that these inherited funds may incur is the title transfer costs. Hence, one can be relieved of the tax issues when one inherits some type of assets.
Since the tax laws have different additions each year, it is best to get the tax issues handled by an accountant, rather than handling in on one’s own and end paying up a penalty. An accountant is the best person to guide someone regarding the tax liabilities and the various options thereof.
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