The testatrix died after forsaking a Will whereby she appointed an executor (a chartered accountant by occupation) who was entrusted to dispose off all belongings amongst 11 beneficiaries subsequent to the grant of probate. The probate is at current caught in courts because of sure authorized disputes by third events who declare to have curiosity in a single asset of the deceased. However, let me make it clear right here that the Will as such has not been challenged by anybody. The executor has not filed the earnings tax returns of the deceased throughout the previous 4 years nor has he surrendered the PAN card of the deceased. Kindly advise whether or not in such a case beneficiaries will be held accountable by the I-T division for non-filing of returns of the deceased.
—Name withheld on request
We perceive that although there are disputes which can be pending in respect of 1 asset of the deceased, the Will has not been challenged within the court docket of regulation. Under the relevant earnings tax provisions, the property of the deceased is chargeable to tax. You have knowledgeable us that the deceased has died forsaking a Will and there’s a named executor within the Will.
In such circumstance, the property of the deceased individual shall be chargeable to tax within the palms of the executor below Section 168 of the Income Tax Act, 1961. The executor shall be assessed individually in respect of the earnings of the property the deceased i.e. separate from his/her private earnings.
Any failure in submitting of returns by the executor of the deceased would entice penalty below related provisions of the Income Tax Act, 1961, which the executor might concentrate on contemplating that he’s a chartered accountant by occupation.
Aradhana Bhansali is companion, Rajani Associates.
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