Tax Obligations Of Deceased: Here's What Legal Heirs Should Know

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Proceedings in the name of deceased person

In a recent ruling by the Bombay High Court, proceedings that are initiated with the name of a deceased person are not valid. These must be directed against legal heirs under Section 159 of the Income Tax Act. 

Tax

Tax liability

Tax liabilities do not end but are rather transferred to the legal representatives or heirs of the deceased.

Tax Liability

Tax proceedings

If the tax proceedings remain pending at the time of the person's death, the Income Tax Department cannot move forward against the deceased themselves., instead a notice is issued in the name of the legal heir. 

Proceedings

Tax notice payment

In case, the notice of the tax payment is issued unintentionally in the name of the deceased, the heir must ask for a correction. If the correction is not done, then the notice becomes invalid. 

Tax

Unreported or untaxed income

The unreported or untaxed income of the deceased person can be subject to investigation. To avoid this, a legal heir should register on the income tax e-filing portal.

Tax

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