Tax applicability

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narayan (Querist)
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26 December 2010 When assessee expired before October in the previous year. Whether income earned by the expired person in the previous year is taxable under income tax act 1961? Who has to file expired persons return ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 December 2010 Legal representative will file the return.

sachin

sachin (Expert)
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27 December 2010 yes. Return has to be filed.

hemlata

hemlata (Expert)
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27 December 2010 Two return has to be filed in the year of death.

vinu vasudevan

vinu vasudevan (Expert)
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27 December 2010 All income which was earned during the life time of deceased person should be assessed in hand of legal representative(s) as per section 159 of the I T Act.Therefore , in such case , legal representative should file the return of the deceased person.
Legal representative is defined u/s 2(29) of the I T Act .
“means a person who in law represents the estate of a deceased person, and includes any person who inter meddles with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued;”

In practical terms , the heir himself if there is only one or if there is more than one heir , should first make an agreement among different heirs so that others assign one person as legal representative for the purpose of income tax matter. That person can sign the return of the deceased person and can appear before the assessing officer in case of any proceedings.

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