INCOME TAX26 Sept 2026
Can legal heirs be liable for a deceased parent’s income tax dues? Experts explain | Mint
A parent's death does not cancel pending income tax dues. Under Section 302 of the Income-tax Act, 2025, legal heirs can be asked to pay, but usually only from the estate they inherit. If you dispose of estate assets while tax is unpaid, you may become personally liable, capped at those assets' value. So list the assets, settle dues first, and take professional help.
Key Statutory Highlights
- Under Section 302 of the Income-tax Act, 2025, a legal representative can be asked to pay the tax the deceased would have owed had they survived.
- Tax proceedings already underway can continue against the legal representative, and proceedings that could have been started against the deceased may be taken up after death.
- If the legal representative disposes of or parts with the deceased's assets while tax is unpaid, personal liability can arise, but it is limited to the value of the asset involved.
Actionable Advice for Taxpayers / Founders:Before distributing or selling anything from the estate, identify and preserve the deceased's assets, check whether any income tax demand is pending, and settle those dues first. If you are unsure how the rules apply to your case, speak to a certified tax professional.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: