Tuesday, 29 January 2019

CBDT : Clarifies official assignee's status as 'artificial juridical person' for return filing & tax computation

CBDT clarifies applicability of 'representative assessee' provisions u/s 160 to official assignees and their classification in the appropriate category of 'person' as defined u/s 2(31) of the Income-tax Act; States that since official assignees do not receive income or manage property on behalf of debtor, they cannot be considered as representative assessee of debtors u/s 160(1)(iii) while computing tax liability arising from estate of debtors; Further clarifies that the status of official assignee is that of 'artificial juridical person' as prescribed u/s 2(31)(vii); Thus states that 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 income shall be taxed as per the rates applicable to an 'artificial juridical person'; Further, requires official assignee to obtain a separate PAN for each of the estate of the insolvent

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