19 October 2011
I have receieved a Demand letter from Income tax addresed to my father for payment of Rs. 12000/- for FY 2008-09. My father passed away in April 2010.As my father was a retired govt pensioner and used to prepare and file his own income tax returns, please let me on the following: 1.Do I need to pay the demand amount as per the letter and what is the process?Is there any penalty applicable. 2.What should I do in order to prevent such letters from the Income tax office in future? Please advice
25 November 2011
The answer to your question is being illustrated with the following income tax section number 165.. please read the following:- Section 159.LEGAL REPRESENTATIVES.
(1) Where a person dies, his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased.
(2) For the purpose of making an assessment (including an assessment, reassessment or recomputation under section 147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (1), - (a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased;
(b) Any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and
(c) All the provisions of this Act shall apply accordingly.
(3) The legal representative of the deceased shall, for the purposes of this Act, be deemed to be an assessee.
(4) Every legal representative shall be personally liable for any tax payable by him in his capacity as legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with.
(5) The provisions of sub-section (2) of section 161, section 162 and section 167, shall, so far as may be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation to a legal representative.
(6) The liability of a legal representative under this section shall, subject to the provisions of sub-section (4) and sub-section (5), be limited to the extent to which the estate is capable of meeting the liability.
AS SUCH YOU WILL BE LIABLE TO PAY THE AMOUNT OF RS. 12000/-.
THERE IS NO SUCH PROVISION WHICH CAN BE USED FOR PREVENTING ANY INCOME TAX OFFICER FROM ISSUING LETTERS IN RESPECT OF YOUR FATHER AS YOU ARE THE LEGAL REPRESENTATIVE ASSESSEE.
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