Tax liability or recovery of tax on person who became person of unsound mind

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This discussion addresses the tax liability of a business owner who becomes mentally ill after conducting business, especially when they lack a legal representative. The proprietor's business has ceased operations due to their condition, and their children are minors while their wife has no business knowledge. The tax department has requested deferment on previous years' tax liability, and guidance is sought on the correct procedure, with a suggestion to file ITR treating the wife as the legal representative.

PRERNA SINHA

PRERNA SINHA (Querist)

01 June 2022 If person becomes mentally ill after doing business and having no legal representative. What will be the tax liability on such person?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 June 2022 The tax liability will be with any body who takes care of his business.

PRERNA SINHA

PRERNA SINHA (Querist)

02 June 2022 The business has been closed because of the unsound mind of the proprietor. His Children are minors & Wife is not having any knowledge of business affairs. And department has asked for deferment in tax liability of previous years..What should be the procedure now? Kindly guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 June 2022 File ITR treating wife as legal representative.

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