Under the Income Tax Act, As per Section 159 states that the liability to pay tax after the death of an individual depends on various factors such as the source and amount of income, type of income, legal status of the deceased and provisions of the will.
Generally, after the death of a person, the responsibility of filing the income tax return and paying the tax liability falls on the legal representative or executor of the deceased’s estate. The legal representative could be the executor or administrator of the estate or the nominee or legal heir of the deceased.
If the deceased had any income during the year of death, the legal representative or executor must file the income tax return of the deceased for that year. The income earned during the year from January 1st to the date of death is considered as income of the deceased, and the income earned after the date of death is considered as income of the legal representative or executor.
The legal representative or executor is also responsible for paying the tax liability of the deceased from the assets of the estate. The tax liability of the deceased is calculated based on the income earned during the year of death and the tax rates applicable to the deceased. The tax liability is first paid from the assets of the estate, and if the assets are insufficient, the legal representative or executor may be required to pay from their own personal funds.
If the deceased had any outstanding tax liabilities from the previous years, the legal representative or executor must also pay those liabilities from the assets of the estate before distributing them to the legal heirs.
If the deceased had made a will, the distribution of the assets of the estate is done as per the provisions of the will. The legal representative or executor must ensure that the tax liabilities are paid before distributing the assets to the legal heirs.
In case the deceased did not make a will, the distribution of the assets is done as per the personal laws applicable to the deceased. The legal representative or executor must ensure that the tax liabilities are paid before distributing the assets to the legal heirs.
after the death of a person, the liability to pay tax depends on various factors, and it is the responsibility of the legal representative or executor of the estate to file the income tax return of the deceased and pay the tax liability from the assets of the estate. The legal representative or executor must ensure that the tax liabilities are paid before distributing the assets to the legal heirs.