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

Mr. Bose died on 10 November in a tax year and was a non-resident for that year. His son, the sole executor, administers the estate. Under section 312 of the Income-tax Act, 2025, how is the executor treated for assessing the estate's income?

With a single executor, the estate's income is taxed in his hands as an individual. He is deemed non-resident because the deceased was non-resident in the year of death, and the assessment is made separately from his own income.

  1. AAs an individual, deemed non-resident, assessed separately from his own incomeCorrect
  2. BAs an individual, resident according to the executor's own status, with his income combined
  3. CAs an association of persons, deemed resident
  4. DAs a representative assessee, exempt from tax until distribution

Explanation

With one executor, the estate's income is chargeable in his hands as an individual. The executor is deemed resident or non-resident per the deceased's status for the year of death, here non-resident. Assessment is separate from his own income. Option 2 wrongly uses his own status and combines the incomes.

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