What taxes need to be paid when a person dies?
- Siva Prasad Bose
- Apr 4, 2021
- 1 min read
Photo by Karolina Grabowska on Pexels.com
In this article, we briefly discuss what are the tax implications when a death happens, especially when the person has left behind a will.
In case the person who has left a will and died (testator) had owned immovable property and left it to someone in their will (heirs), then all taxes for that property until the death of the person should be paid out of their total estate, and after the death should be paid by the person in whose name the property was bequeathed.
The above rule is from section 36 of the Transfer of Property Act 1882.
The same also applies to taxes for rent, dividends, annuities, pensions, and other periodical payments.
If the tax has already been assessed as payable and then the person dies, the administrator, executor or other legal representative is liable to pay the tax amount. However, their liability only extends to the extent of the estate which is in their control.
However, as per case law [AIR 1956 Allahabad 152, Succession Act 1925 Section 276], a petitioner for probate of a will is not liable to pay court fees and estate duty out of their own property. These sums are to be paid from the deceased’s estate.
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