Capital gain on legal heirs
This query is : Resolved
15 May 2012
my father has sold a property in sept 2008 for Rs 1 crore. the capital gain was accounted to Rs 60 lakhs. he hasn't paid any income tax nor made any investments for claiming eexemptions under section 54. He expired on Feb 2009. The I.T Dept has issued a letter on my father's Name on Nov 2011, besed on AIR Information. I heve recieved only a portion of the ampunt from my father on his demisal. Major portion was spend by my father himself. Am i liable to be assessed on my fathers behalf on the above mentioned case. What are my liabilities? am i exempted.
Please advice me in detail.
Please advice me in detail.
15 May 2012
The income tax department is empowered to collect the tax payable by an assessee from his legal heirs. However, penalty will not be levied on the legal heir.
15 May 2012
Assessment can't be made on dead person and hence legal heirs are liable to pay capital gains tax.
15 May 2012
Even when a person dies, the assessment of his income is to be done upto the time of his death.
The legal representative of the deceased has to file the income tax return for the income on which the deceased would have been liable to pay income tax if he had not died.
On the return, the name should be mentioned as “late (name of deceased) through legal heir (name of person filing)”. The legal heir should also submit a copy of the death certificate of the deceased, and submit the Permanent Account Number Card (PAN Card) of the deceased.
Even when a person dies, the assessment of his income is to be done upto the time of his death.
The legal representative of the deceased has to file the income tax return for the income on which the deceased would have been liable to pay income tax if he had not died.
On the return, the name should be mentioned as “late (name of deceased) through legal heir (name of person filing)”. The legal heir should also submit a copy of the death certificate of the deceased, and submit the Permanent Account Number Card (PAN Card) of the deceased.
15 May 2012
If the tax liability is large, there can be a dispute between heirs.
The tax is to be recovered from the estate of the deceased. Thus, all the legal heirs are liable upto the extent of the assets that they inherit.
You are not responsible to pay income tax of the deceased from your own money.
The tax is to be recovered from the estate of the deceased. Thus, all the legal heirs are liable upto the extent of the assets that they inherit.
You are not responsible to pay income tax of the deceased from your own money.
15 May 2012
if your father's tax liability is Rs. 100 and you got only Rs. 50 from your father then your liability is limited to Rs. 50 only
15 May 2012
there is no more any estate in the name of my father except a business which was transferred to me under will in 2004. But a payment of Rs 30 lakhs was paid to my relative out of the capital gain receipt by my late father. Then what is the extent of tax liability of mine?
15 May 2012
The assessment will be on legal heirs. The property of the deceased is liable to pay the taxes. (No matter how much you got and how much was donated by your father.
15 May 2012
Being a legal heir you are personally liable for all his tax dues till the time he was alive. Even if you didn't get sufficient amount from him, your personal property is liable for payment of the dues of your father. There is nothing illegal if the department takes action against you.
15 May 2012
The liability of the legal heir is limited to the extent of the property he has got from the decesed assesee. IN this case too the son's libility is limimted to pay taxes to the extent he has got the amount from his father. For example in case of capital gain tax being 12 Lac (20% of 60 Lac), if the son has got Rs 1o Lac from his father, his liability is up to Rs 10 Lac only. His personal property are not laible for paying the taxes of his father.
15 May 2012
The liability of the legal heir is limited to the extent of the property he has got from the decesed assesee. IN this case too the son's libility is limited to pay taxes to the extent he has got the amount from his father. For example in the above case, capital gain tax being 12 Lac (20% of 60 Lac), if the son has got Rs 10 Lac from his father, his liability is tp pay tax up to Rs 10 Lac only. His personal property are not laible for paying the taxes of his father.
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