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Nimesh Dave (General Secretary)     15 May 2013

Tax liability of legal heir of a deceased person

My friend's father had obtained two separate licenses under shops and establishment act. He started business at three locations. He did not apply for registration for Professional tax and even not paid the tax till date of his death.


Now my friend becomes an owner of the shop as he is the only legal heir. When he approach for the registration for Professional tax the authority has asked him to produce the details of registration made by his father. As mentioned earlier my friend's father did not register for professional tax and not even paid during his life.


The professional tax authorities also told my friend that his father has not registered his business under professional tax act and not paid the tax. Due to this he is liable to pay the all recovery and penalties as per the provisions of professional tax rules.   


When my friend asked why I have to pay the recovery of tax and penalties, the authorities have replied that any due recovery or penalty of a business can be recovered from the new owner.


Giving the justification the authorities further clarified the reason for tax liability on legal hears that when legal heir is having right on deceased's properties/assets he is also responsible for the payments of dues/liabilities of the deceased.


My friend is in depression thinking about huge amount of probable penalty.

Sirs, Please reply on my below questions.


1. Can Professional Tax Authority recover this type of recovery from new owner?

2. What are options left available with my friend ?


 3 Replies


The queries raised relate to the Profession Tax.

However,in general, the legal representative's liabilty is limited to the value of the assets inherited from the deceased, and to the demands which had been raised on the deceased as at the time of his death. In otherwords, your friend, as the l/r, is not liable to pay the penalties and taxes which had not been demanded till his father died.

He may consult any good lawyer.

devendra (Purchase Executive)     15 May 2013

How to get refund of tds deducted from employer?

can we get refund for last two years TDS deduction?

Nimesh Dave (General Secretary)     16 May 2013

Thank You Sir for valuable advise.

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