Who’s accountable if executor doesn’t file returns of deceased?

The testatrix died after forsaking a Will whereby she appointed an executor (a chartered accountant by career) who was entrusted to dispose off all belongings amongst 11 beneficiaries subsequent to the grant of probate. The probate is at current caught in courts as a result of sure authorized disputes by third events who declare to have curiosity in a single asset of the deceased. Nevertheless, let me make it clear right here that the Will as such has not been challenged by anybody. The executor has not filed the revenue tax returns of the deceased in the course of the previous 4 years nor has he surrendered the PAN card of the deceased. Kindly advise whether or not in such a case beneficiaries will be held accountable by the I-T division for non-filing of returns of the deceased.

—Identify withheld on request


We perceive that although there are disputes which can be pending in respect of 1 asset of the deceased, the Will has not been challenged within the court docket of regulation. Underneath the relevant revenue tax provisions, the property of the deceased is chargeable to tax. You might have knowledgeable us that the deceased has died forsaking a Will and there’s a named executor within the Will.

In such circumstance, the property of the deceased particular person shall be chargeable to tax within the palms of the executor beneath Part 168 of the Earnings Tax Act, 1961. The executor shall be assessed individually in respect of the revenue of the property the deceased i.e. separate from his/her private revenue.

Any failure in submitting of returns by the executor of the deceased would appeal to penalty beneath related provisions of the Earnings Tax Act, 1961, which the executor could pay attention to contemplating that he’s a chartered accountant by career.

Aradhana Bhansali is associate, Rajani Associates.

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