Estate Tax: Individual Rates Apply for Sole Executor

Quick Summary

The Income Tax Appellate Tribunal (ITAT) has ruled that an estate with a single executor should be taxed using individual income tax slab rates, not the higher maximum marginal rate. This decision stems from Section 168(1)(a) of the Income Tax Act, which states that when an estate has only one executor, its income is taxed as if the executor were an individual. The Tribunal emphasised that the estate's status as an Artificial Juridical Person (AJP) does not automatically warrant the maximum marginal rate. However, the case was sent back to the Assessing Officer to verify the executor's status from the deceased's will.

Court :
MUMBAI

Brief :
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has held that where the estate of a deceased person is administered by a sole executor, the income of the estate should be assessed at the slab rates applicable to an individual under Section 168(1)(a) of the Income Tax Act, subject to verification of the will.

Citation :
ITA 4273/MUM/2026

Daily Limit Reached