pahuja
(C.A Final Student )
(472 Points)
Replied 28 July 2011
Hi Mr. Anil, As per section 159 of the Income Tax Act, 1961 (Act), even when a person dies, the assessment
of his income is to be done upto the time of his
death. So, the legal representative of the deceased
has to file the income tax return for the income
on which the deceased would have been liable to
pay income tax if he had not died. The legal heir should also submit a copy of the death certificate
of the deceased, and submit the Permanent
Account Number Card (PAN Card) of the deceased.
Advance tax payments and self assessment tax payments are also to be done by the legal
representative. The tax is to be recovered from
the estate of the deceased. Thus, all the legal heirs
are liable upto the extent of the assets that they
inherit. Taxability of family pension received after death: After the death of an Employee if there is any
Family Pension received by the legal heirs of the
deceased it will be deemed to be the Income of
legal heirs and will be taxed under Income from Other Sources. Thanks and Regards Suraj Pahuja