Gireesh Bhalla : Wealth tax of a deceased person

WEALTH TAX OF DECEASED PERSON PAYABLE BY LEGAL REPRESENTATIVE & ASSESSMENT IN THE CASE OF EXECUTORS

A)        Tax on deceased person payable by legal representative :-

            i)          As per section 19 of the Wealth Tax Act whereas a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth-tax assessed as payable by such person, or any sum, which would have been payable by him under this Act if he had not died.

ii)         Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the Assessing Officer has reason to believe to be incorrect or incomplete, the Assessing Officer may make an assessment of the net wealth of such person and determine the wealth tax payable by the person the basis of such assessment, and for his purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of section 16 have been required from the deceased person.

i)          The provisions of sections 14, 15 and 17 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in those sections.

B)        Assessment in the case of executors :-

i)          As per section 19A of the Wealth Tax Act subject as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or exectors.

ii)         The  executor or executors shall for the purposes of this Act be treated as an individual.

iii)         The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that as that of the deceased on the valuation date immediately preceding his death.

iv)        The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19.

ii)         Separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests.

vi)        In computing the net wealth on any valuation date under this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legate on any valuation date, be included in the net wealth of such specific legatee on that valuation date. 

Explanation- In this section, “executor” includes an administrator or other person administering the estate of a deceased person.