Taxibility of minor in case of death of Parents

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This query is : Resolved

CA Sunanda Badgujar (Querist)

15 July 2009 what is the taxability in the case where the parents are died in the year and there is only a minor survived?
in the case R P Sarathy vs CIT (2006, 5 SOT 732, Chennai), it was held that the minor's income in case where both the parents are not alive can not be assessed in the hands of grand parents or any other relative or even in the Hand of Minor.
Based on the above case, Who will be liable to file the return and for the tax liability on the income arise and accrued from the property of died parents?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

15 July 2009 Until the minor becomes major. You can continue the erstwhile file of mother and father as estate of x and estate of y by the grand father being gaurdian and can pay the appropriate taxes and finally when he becomes major it will be transfered.

Or create a private trust, tranfer the properties to private turst, grand partents will be trustees and pay tax and file returns in the status of private trust and after he becomes major dissolve the private trust.

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