Taxpayers have to pay tax even after death, know what the rule of income tax law is

Although all the rules of Income Tax Act 1961 is clear, in the meantime, there are many such rules about which income taxpayers are not aware. So far more than one lakh people have died in the country during the COVID-19 period. People generally think that they do not have to file income tax returns after death. But it is not so.

 

As per the Income Tax Act, it is mandatory for every person whose income falls in the taxable limit in the relevant financial year, even if he has died. Let us know some important information related to this rule.

 

Who will pay income tax after the taxpayer's death? Under Section 159 of the Income Tax Act, 1961, if a taxpayer dies, his legal heir has to pay the tax. Therefore, if you are the legal heir, you must first contact the Income Tax Department and register yourself as the legal representative of the deceased.

 

Who will be the successor if there is no will? At the same time, if the taxpayer has not made a will, then according to the Indian successor rule, the person who will acquire the property of the deceased will have to fulfil the income tax-related obligations.

 

How will deceased income be calculated? Meanwhile, an important question arises as to how the income of the deceased person will be calculated because, on the basis of this, that heir will have to pay income tax. According to the income tax rule, the income earned from the beginning of the financial year till death is considered the income of the deceased person. Income earned from property inherited from the deceased person is considered income taxable.

 

What is the responsibility of the successor? Every successor has to take responsibility for the deceased and file his return and file income tax. It is to be known that if any notice is issued before the death, then it will be the responsibility of the successor as well. His action may continue against the heirs from the date of death.