Finance Act, 1932

Assessment of executors and administrators of deceased persons.

5.—(1) The following Rule shall be and is hereby inserted in the General Rules applicable to Schedules A, B, C, D, and E of the Income Tax Act, 1918, in lieu of Rule 18 now contained therein and those Rules shall be construed and have effect accordingly, that is to say:—

18.—(1) Where a person dies whether before, on, or after the 6th day of April, 1932, an assessment or an additional first assessment (as the case may be), may be made for the year of assessment in which such person dies or for any one or more of the six years next preceding that year in respect of the profits or gains which arose or accrued to such person before his death, and the amount of the tax on such profits or gains shall be a debt due from and payable out of the estate of such person, and the executor or administrator of such person shall be assessable and chargeable in respect of such tax.

(2) No assessment under this rule shall be made later than six years after the expiration of the year of assessment nor, in any case, later than three years after the expiration of the year of assessment in which the deceased person died.

(3) The executor or administrator of any such deceased person shall, when required by a particular notice so to do, prepare and deliver to the inspector of taxes a true and correct statement in writing signed by such executor or administrator and containing particulars, to the best of his judgment and belief, of the profits or gains which arose or accrued to such deceased person before his death and in respect of which such executor or administrator is assessable under this rule, and the provisions of the Income Tax Acts relating to statements to be delivered by any person shall apply, with any necessary modifications, to statements to be delivered under this rule.

(4) Nothing in this rule shall apply to or affect statements to be delivered or assessments to be made in respect of a trade, profession, or vocation carried on by two or more persons jointly.”

(2) The Rule inserted by the foregoing sub-section of this section in the General Rules applicable to Schedules A, B, C, D, and E of the Income Tax Act, 1918, shall have effect in relation to assessments made after the passing of this Act in respect of tax chargeable for any year of assessment whether beginning before or after the passing of this Act.

(3) The references in sub-section (3) of section 10 of the Finance Act, 1929 (No. 32 of 1929), to a person ceasing to possess a source of income or profits shall be construed as referring to a cesser occurring by reason of the person dying while in possession of the source of income or profits as well as to a cesser occurring in the lifetime of such person, and for the purposes of the said sub-section (3) such death shall be deemed to cause a cesser, and such cesser shall be deemed to take place on the day of such death, and the said section 10 shall apply and have effect accordingly.

(4) The reference in sub-section (1) of section 12 of the Finance Act, 1929 (No. 32 of 1929), to the discontinuance of a trade, profession, or vocation shall be construed as referring to a discontinuance occurring by reason of the death while carrying on such trade, profession or vocation of the person carrying on the same as well as to a discontinuance occurring in the lifetime of such person, and for the purposes of the said section 12 such death shall be deemed to cause a discontinuance and such discontinuance shall be deemed to take place on the day of such death, and the said section shall apply and have effect accordingly.