TDS Credit for TDS VisaVis Legal Heir

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The Tax Publishers Income Tax--TDS Credit for TDS Vis-a-Vis Legal Heir CA. Nisha Bhandari The legislature has provided adequate mechanism to provide credit for tax deducted at source in the hands of the right person. In case of a deceased person credit can be rightly claimed by the legal heir. The learned author discusses some judicial decisions to provide some insight on the impugned issue in the present write up apart from related statutory background. 1. Income of deceased to be assessed in hands of legal representative Section 159 deals with the provisions relating to legal representatives. As per section 159(1) where a person dies, his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. It is worthwhile to note that the assessment qua legal representative shall be made only for one assessment year, namely for the assessment year corresponding to the accounting year of death. However, against the executor or administrator, there would be yearly assessments commencing from the assessment year corresponding to the accounting year of death till the year in which the administration of the estate is completed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--TDS

Credit for TDS Vis-a-Vis Legal Heir

CA. Nisha Bhandari

The legislature has provided adequate mechanism to provide credit for tax deducted at source in the hands of the right person. In case of a deceased person credit can be rightly claimed by the legal heir. The learned author discusses some judicial decisions to provide some insight on the impugned issue in the present write up apart from related statutory background.

1. Income of deceased to be assessed in hands of legal representative

Section 159 deals with the provisions relating to legal representatives. As per section 159(1) where a person dies, his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased.

It is worthwhile to note that the assessment qua legal representative shall be made only for one assessment year, namely for the assessment year corresponding to the accounting year of death. However, against the executor or administrator, there would be yearly assessments commencing from the assessment year corresponding to the accounting year of death till the year in which the administration of the estate is completed.