CBDT clarifies the issue regarding liability and status of Official Assignees under the Income Tax Act, 1962

Jan 29, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on January 28, 2019 has clarified the issue of liability and status of Official Assignees under the Income Tax Act, 1962.

The property of the insolvent has been vested with the Official Assignee as per specific provisions of the Act/Law regulating functioning of the Official Assignees; they have to be treated as a 'juristic entity' for purposes of the Income-Tax Act. Hence, the CBDT has clarified that for purpose of discharge of tax-liability under the Act, the status of Official Assignees shall be that of an 'artificial juridical person' as prescribed in Section 2(31 )(vii) of the Act, not being one of the 'persons' falling in sub-clauses (i) to (vi) of Section 2(31) of the Act.

Therefore, Official Assignee is required to file income-tax return electronically in the ITR Form applicable to 'artificial juridical person' separately for each of the estate of the insolvent and the income shall be taxed as per the rates applicable in a particular year to an 'artificial juridical person'.

In view of the above position, Official Assignees would have to obtain a separate PAN for each of the estate of the insolvent.

[Circular No.04/2019]

URL: https://www.incometaxindia.gov.in/communications/circular/circular_4_2019.pdf


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