Amended and updated notes on section 168 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Executors.
Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 168 of IT Act 1961 provides for Executors.
Recently, we have discussed in detail section 167B (Charge of tax where shares of members in association of persons or body of individuals unknown, etc.) of IT Act 1961. Today, we learn the provisions of section 168 of Income-tax Act 1961. The amended provision of section 168 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 168 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-168: Executors
Section 168(1) of Income Tax Act
Subject as hereinafter provided, the income of the estate of a deceased person shall be chargeable to tax in the hands of the executor,—
- (a) if there is only one executor, then, as if the executor were an individual; or
- (b) if there are more executors than one, then, as if the executors were an association of persons;
and for the purposes of this Act, the executor shall be deemed to be resident or non-resident according as the deceased person was a resident or non-resident during the previous year in which his death took place.
Section 168(2) of Income Tax Act
The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own income.
Section 168(3) of Income Tax Act
Separate assessments shall be made under this section on the total income of each completed previous year or part thereof as is included in the period from the date of the death to the date of complete distribution to the beneficiaries of the estate according to their several interests.
Section 168(4) of Income Tax Act
In computing the total income of any previous year under this section, any income of the estate of that previous year distributed to, or applied to the benefit of, any specific legatee of the estate during that previous year shall be excluded; but the income so excluded shall be included in the total income of the previous year of such specific legatee.
Explanation: In this section, “executor” includes an administrator or other person administering the estate of a deceased person.