section 47/168, Income Tax

[hariharpur shivaram]

Section 47 says transactions not regarded as transfer for any transfer of capital asset under gift or will.

Under section 168 ,the executors have to pay Capital gain tax and then distribute the remaining amount to the beneficiearies stated in the will.

Please explain the applicability of both the sections and whether s 47 overrides section 168 with any any case law if available.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Section 47 says that any transfer of capital by means of gift is not considered as a transfer. Likethat if a capital asset is transferred to a person by means of a will executed by the deceased is also not a transfer under income tax.

The position of executor is distinct from the above. The deceased person may authorize a person as executor and give instructions to deal with his money. The executor is to act according to the instructions of the deceased and he has to pay tax on the income of the deceased.