Whether legal representative is under an obligation to intimate about the death of the taxpayer to the IT Department?
Is there is any mandatory legal requirement to intimate about Death of the Taxpayer to Income-Tax Authorities?
In the case of Savita Kapila [Legal Heir] v/s ACIT [(2020) 118 taxmann 46 (Delhi)], Hon’ble Delhi High Court observed that:
1. There is no statutory requirement imposing an obligation upon legal heirs to intimate the death of the assessee.
2. In the absence of a statutory provision it is difficult to cast a duty upon the legal representatives to intimate the factum of death of an assessee to the income-tax department.
3. After all, there may be cases where the legal representatives are estranged from the deceased assessee or the deceased assessee may have bequeathed his entire wealth to a charity.
4. Consequently, whether PAN record was updated or not or whether the Department was made aware by the legal representatives or not is irrelevant.
Note: However, in order to avoid un-necessary litigation by the legal heir, better to intimate the Assessing Officer concerned.
The copy of the circular is as under:
