Assessee dies and tds deducted in his name in next fy

This query is : Resolved

Sandeep Poddar (Querist)
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21 November 2013 Assessee has a FD in Bank under Capital Gain Account Scheme(Account-B), He expired on 15.3.2013, during the period in which he was to use the funds to buy residential property, henceforth the amount becomes tax free in hand of legal heirs. Now the issue come from here, we need to obtain permission from ITO to close the account, which may take some time. Meanwhile TDS is being deducted in Deceased assessee`s name on the amount of interest accumulated. How should I file ITR in a manner that TDS amount is refunded to legal heirs or is adjusted in amount of tax payable by legal heirs?

Should I continue to file ITR in name of deceased assessee under legal representation or his income is to be clubbed with legal heirs but then TDS is being deducted in deceased assessee`s name by bank!?

He had a will in place wherein her assets are divided amoung her legal heirs, there isnt any issue between legal heirs the only issue is to realise the TDS money which is being deducted and which will be deducted for sometime till FD is withdrawn.

Rajnish Singh

Rajnish Singh (Expert)
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21 November 2013 Dear Sandeep,

following case shall assist you to take decision.

PETITIONER:

THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY I, BOMBAY

Vs.

RESPONDENT:

AMARCHAND N. SHROFF, BY HIS HEIRSAND LEGAL REPRESENTATIVES

DATE OF JUDGMENT:

10/10/1962

BENCH:

KAPUR, J.L.

BENCH:

KAPUR, J.L.

HIDAYATULLAH, M.

SHAH, J.C.

CITATION:

1963 AIR 1448 1963 SCR Supl. (1) 699 CITATOR INFO :

R 1964 SC1761 (13,14)

R 1965 SC1358 (20)

RF 1966 SC1260 (14)

D 1967 SC 193 (28)

R 1971 SC2591 (1)

RF 1973 SC1016 (12)

RF 1976 SC 313 (17)

D 1982 SC 865 (12)

R 1984 SC 790 (17)

R 1989 SC2113 (28)

ACT:

Income Tax-Liability to tax of income of deceased person- Such income in hands of the legal representative Income of the previous year-Indian income-tax Act, 1922 (11 of 1922), s. 24 B.

HEADNOTE: