Question

In 2019, Iris collected $150,000 on her deceased husband’s life insurance policy. The policy was purchased by the husband’s employer under a group policy. Iris’s husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer.

Iris also received a separate inheritance from her husband of $70,000 and a gift of $30,000 from her brother. Iris, who is currently in perfect health, also sold a life insurance policy on herself to an insurance company for $130,000. She had paid premiums of $35,000 on the policy. What is Iris’ gross income from these transactions?

Answer 1

• In India, there is no income tax levied on inheritance. However, any income earned on subsequent investment of the inherited assets shall be taxable
• The rental income arising to your wife out of the share of property gifted by you to your wife shall be clubbed as taxable income in your hands

The death benefits are not counted as taxable income, but any interest that accumulates over it or estate additions because of it is liable to be taxed.

Income for Iris

Gross Income =insurance amount -premium paid

=130000 $-35000 $

=95000 $

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answered by: anonymous