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CMA Intermediate · Direct and Indirect Taxation · Residential Status and Scope of Total Income

An executor holds the estate of a deceased person and also earns his own salary and rental income. Which statement follows from the Income-tax Act, 2025?

The estate income is assessed separately from the executor's own income. The Act requires the executor's assessment in that capacity to be distinct from any assessment of his personal income, so the two are not combined into one total income.

  1. AThe estate income is added to his own income and assessed in a single assessment
  2. BThe estate income is assessed separately from any assessment on his own incomeCorrect
  3. CThe estate income is exempt until distribution to beneficiaries is complete
  4. DThe executor's own income is assessed in the estate's name

Explanation

Section 312(4) states that the assessment of an executor in that capacity is made separately from any assessment in respect of his own income. Combining the two is therefore wrong, and no exemption until distribution exists in the text.

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