Acceptance of Deposit of tax - legal heirs of the deceased person - Income Tax - 865/CBDT

INSTRUCTION NO. 865/CBDT Dated : August 16, 1975 Section(s) Referred: 159 Statute: Income - Tax Act, 1961 A copy of Reserve Bank of India letter C.A. No. 2605/98-74/75 dated 19th June, 1975 on the above subject is printed below for information and guidance. Copy of the letter of Reserve Bank of India to the State Bank of India, Subsidiary Banks and all Nationalised Banks as per list attached. Dear Sir, Compulsory Deposit Scheme (Income-tax Payers) Act 1974. Please refer to our letter G.A.No. 1999/98-74-75 dated the 14th April, 1975 on the above subject. 2. Under section 3(2)(b) of the captioned Act every person who is assessable under the Income-tax Act, 1961 in respect of the total income of an individual, or a Hindu Undivided family or a trustee is required to make compulsory deposit. Under section 159 of the Income-tax Act, 1961 when a person dies, his legal representative is liable to pay any sum which the deceased would have been liable to pay in the like manner and to the same extent as the deceased. Accordingly compulsory deposit is required to be made by legal heirs of the deceased if the taxable income of the deceased during the accounting period exceeds Rs. 15,000. 3. You may, therefore, advise all your branches to ensure that deposits under the above Act are accepted from the legal heirs of the deceased person when so tendered. They may also be advised that repayment in such cases may also be made to the legal heirs who made the deposit as it will be a valid discharge of obligation of the banks.