How will rent, MF capital gains be taxed?

livemint.com:

—Name withheld on request Rental income from a jointly owned house is taxable in the hands of the co-owners, in proportion of the investments made by each co-owner towards purchase of the property. On the assumption that your holding in the property will be inherited by your wife and daughter after your death, the rental income shall be taxable in their hands in proportion of their respective the property share (including the inherited portion). It is assumed that FDs and the MFs (held by you in India), shall be inherited by your daughter post your demise.

Thus, any income arising from such investments, shall be taxable in your daughter’s hands. The interest / dividend earned from such FD and MFs, shall be taxable under the head ‘Income from Other Sources’, at applicable tax rates. As for capital gains (arising on sale of MFs), the taxability and applicable tax rates would be dependent on the type of capital gain (i.e., long-term / short-term depending on the period of holding) and on the nature of asset (i.e., equity or debt).

Also, considering that this would be an inherited asset, the period for which the MFs were held by you (i.e., the previous owner) shall also be considered. The cost of acquisition for the purpose of calculating capital gains, shall be the actual cost in your hands As the rent, interest, dividend, any future capital gains etc. are from India assets, the same would continue to be taxable in India.