Liability for tax on death: legal representatives or estate remain liable when business continues or discontinues. Where a taxable person dies, the successor who continues the business is liable for tax, interest and penalty; if the business is discontinued, the legal representative is liable out of the estate. On partition of an HUF or association, members are jointly and severally liable for amounts due up to partition. On firm dissolution, former partners are jointly and severally liable for amounts due up to dissolution. On termination of guardianship or trust, the ward or beneficiary is liable for amounts due up to termination. Each rule is subject to the insolvency law exception.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Liability for tax on death: legal representatives or estate remain liable when business continues or discontinues.
Where a taxable person dies, the successor who continues the business is liable for tax, interest and penalty; if the business is discontinued, the legal representative is liable out of the estate. On partition of an HUF or association, members are jointly and severally liable for amounts due up to partition. On firm dissolution, former partners are jointly and severally liable for amounts due up to dissolution. On termination of guardianship or trust, the ward or beneficiary is liable for amounts due up to termination. Each rule is subject to the insolvency law exception.
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