Re: Death and freeze saving and current account how can pay tax

Pected sir
My father select se VSV scheme he has two case he also mentally ready to pay outstanding amount on or before 31st March and he also planned to arrange the Funds.

But suddenly he died on dt 16-02-2021 the text amount found in our current account and also saving account but by father’s WILL not registered as well as the witness signature is pending in WILL.

After death of my father, my father’s all accounts freezed by bank and they demanded us probeta or succession certificate from court
We consult some lawyer regarding to this matter and as per their statement certificate may be received after 6 month or 8 month.

The text amount is huge and our family can not arrange this amount.

We also request to branch level regional office level and head office level but they said that do not permit to pay the vsv scheme payment they also said that if income tax Department send any demand or attachment on this account then can release this fun
Now our family want to to fulfill my father’s liabilities as soon as possible so please give us guidance for our dues how to pay.
rksarvaiya99@gmail.com

We presume that the father has filed the  Declaration under  Vsv Act and all other  conditions of the Vsv Act is satisfied .  In case the father has given nomination in favour of any person the Bank has to transfer the amount to the nominee refer Ram Chander Talwar v. Devendra Kunar Talwar ( 2020) 10 SCC 671 . If the amount is transferred in the name of nominee , the nominee can with the consent of all legal heirs may request the bank to release the payment of tax as per VSV Act , determined by the Designated Authority .   In case the father has not given any nomination the legal heirs has to get the probate or succession Certificate .  It may be desirable to make  an application for probate or succession Certificate at the earliest and move an application before the Court to release the payment to the Income tax department . In the petition the legal heirs  can make Income tax Department as well as Bank also party as respondents . we are sure the Court may direct the Bank to release the payment in favour of the Income tax Department . In case the deceased has not filed the Vsv Declaration the legal Heirs can file the  Declaration on or before 31 st March 2021. The earlier notification dated 27 -10 -2010 has been amended  by vide Notification No. 09/2021/ F.No. IT(A)/01/2020-TPL dated 26th February, 2021 by CBDT, the time limit for payment without additional amount is extended to 30 th April 2021 . the abovementioned notification, even earlier forms issued will also be covered and payments made upto April 30, 2021 will be as per the third column of the table to section 3 of VSVA .   The assessee can also make payment after 30 th April 2021 however the assessee has to pay extra amount  . Please refer CBDT Circular No 9 dt 22-4 -2020 dt. Q No. 28 and answer given by the CBDT , it will be 110 % of the disputed tax .

 

 

 

---