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LTCG TAX LIABILITY OF DECEASED PERSON

Surajit Bhattacharya (Student) (47 Points)

19 February 2024

Say, a person successfully lodges mutual funds’ (equity) redemption request on 15-January-2024 at 8:00 am. This person dies on the same day at 11:00 am. The redemption amount is credited to the bank account of this person (his wife is the joint holder in this bank account) on 16-January-2024. Capital gain statement is showing that date of redemption is 15-January-2024. In this scenario, who is liable to pay tax on capital gains, the deceased person (by Legal Heir) or the surviving wife?

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10 Replies

sabyasachi mukherjee (26067 Points)
Replied 19 February 2024

To be transferred to his immediate legal heirs.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 19 February 2024

The deceased person is liable to pay tax as request was made when he was alive

1 Like

Surajit Bhattacharya (Student) (47 Points)
Replied 19 February 2024

Thanks a lot Madam for your valuable response.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 19 February 2024

Welcome 🤗🤗🤗🤗

Alton Beck ( Logistician) (27 Points)
Replied 20 February 2024

Legally, the capital gains would be attributed to the deceased person for tax purposes. The surviving wife, as the joint holder of the bank account where the redemption amount was credited, may have access to the funds, but the tax liability remains with the deceased person's estate. scratch geometry dash

1 Like