08 January 2016
One of my client received Notice from Income Tax Department in the name of his father (who is dead now) on Dtd.01.01.2016, inquiring about Transaction of sale of immovable property happened in F.Y.2008-09 in his name involving amount more than Rs.30,00,000/-. Where no PAN was quoted nor any Return of Income was submitted by him. Can my client be held liable to pay tax on such transaction, of which he is not knowing any whereabouts and also he is the only legal heir to his Father after his death. And also notice involving Transaction, which is more than 7 Years old.
09 January 2016
The estate of your friends' father is liable for the same. That means, if any assets were devolved through bequeath by a will, the legatee is liable to the creditors.
In case a person dies without making a Will, he is said to have died intestate. His property shall be inherited to his legal heirs in accordance with the personal law applicable to him i.e. The Hindu Succession Act, 1956, The Indian Succession Act, 1925, un-codified law of Muslims, Parsis etc.
Even in such case also, the person who is succeeding the properties is liable to the creditors.
If no property inherited by your friend from his father, your friend not liable personally.
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