Sections 302 and 312 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When a person dies, tax proceedings and unpaid tax do not simply end. Section 302 makes the legal representative liable to pay what the deceased would have owed, continues proceedings against the representative, and limits the liability to the estate, except where the representative deals with estate assets while tax is unpaid. Section 312 taxes the income of the estate in the hands of the executor. This article reads both as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. Both sit in Chapter XVII, covered in our chapter guide.
The legal representative pays any sum the deceased would have owed, in the like manner and to the same extent, and is deemed to be an assessee. Liability is limited to the estate, unless the representative creates a charge on, or disposes of, estate assets while tax is undischarged, in which case he is personally liable up to the value of the asset. An executor is taxed on the estate's income as an individual (one executor) or as an association of persons (more than one).
Section 302: legal representative
Sub-section (1): liability to pay
Where a person dies, his legal representative is liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. Section 302 itself does not define "legal representative".
Sub-section (2): assessment and proceedings
For making an assessment (including an assessment, reassessment or recomputation under section 279) of the income of the deceased, and for levying any sum in the hands of the legal representative:
- (a) any proceeding taken against the deceased before his death is deemed to have been taken against the legal representative and may be continued against him from the stage at which it stood on the date of death;
- (b) any proceeding which could have been taken against the deceased if he had survived may be taken against the legal representative; and
- (c) all the provisions of the Act apply accordingly.
Our articles on section 279 and on the reassessment time limit explain the reassessment route that sub-section (2) refers to. If an assessment on a deceased relative has been reopened, our income tax return filing team can help the family respond.
Sub-section (3): deemed assessee
The legal representative of the deceased is deemed to be an assessee for the purposes of the Act.
Sub-sections (4) to (6): limits of liability
| Sub-section | Rule |
|---|---|
| (4) | Subject to sub-sections (5), (6) and (7), the liability of the legal representative is limited to the extent to which the estate of the deceased is capable of meeting the liability |
| (5) | Every legal representative is personally liable for any tax payable by him in his capacity as legal representative if, while such liability for tax remains undischarged, he creates a charge on, or disposes of, or parts with any assets of the estate of the deceased which are in, or may come into, his possession |
| (6) | The liability under sub-section (5) is limited to the value of the asset so charged, disposed of or parted with |
Sub-section (7): provisions on representative assessees
The provisions of sections 304(2) and (5) and 305 apply, in so far as may be and to the extent not inconsistent with section 302, in relation to a legal representative. Section 304 covers the liability of a representative assessee and section 305 the right to recover tax paid; our article on sections 303 to 306 explains them.
Section 312: executor
| Sub-section | Rule |
|---|---|
| (1) | The income of the estate of a deceased person is chargeable to tax in the hands of the executor as an individual, if there is only one executor, or as an association of persons, if the executors are more than one |
| (2) | The executor is deemed to be resident or non-resident according to the residential status of the deceased person for the tax year in which his death took place |
| (3) | "Executor" includes an administrator or other person administering the estate of a deceased person |
| (4) | The assessment of an executor under this section is made separately from any assessment on him in respect of his own income |
| (5) | Separate assessments are made on the total income of each completed tax year, or part of a tax year, in the period from the date of death to the date of complete distribution to the beneficiaries according to their several interests |
| (6) | In computing the total income of a tax year, any income of the estate of that year distributed to, or applied to the benefit of, any specific legatee during that year is excluded; the income so excluded is included in the total income of the tax year of that specific legatee |
| (7) | Section 305 applies, so far as may be, to an executor in respect of tax paid or payable by him, as it applies to a representative assessee |
Points to notice
- The charge is on the income of the estate, not on the executor's own income; sub-section (4) keeps the two assessments apart.
- Residential status is fixed by reference to the deceased for the tax year of death. See our article on section 6 for how residential status is decided.
- Assessments run year by year from death until the estate is completely distributed. Income paid to a specific legatee in the year is taxed in that legatee's hands and not in the estate's.
A worked example
The names and amounts are assumed.
Legal representative (section 302). Mr. Arvind Rao dies in a tax year with an assessment pending against him. His son Deepak is his legal representative.
- The pending proceeding is deemed taken against Deepak and continues from the stage it had reached on the date of death (sub-section (2)(a)). Deepak is deemed to be an assessee (sub-section (3)).
- Suppose the tax payable on the deceased's income comes to Rs. 3,00,000 and the estate is capable of meeting only Rs. 2,00,000. Under sub-section (4) Deepak's liability is limited to Rs. 2,00,000.
- Suppose Deepak, while the Rs. 3,00,000 remains undischarged, sells an estate asset worth Rs. 1,50,000. Under sub-section (5) he is personally liable for any tax payable by him as legal representative, and under sub-section (6) that personal liability is limited to the value of the asset: Rs. 1,50,000.
Executor (section 312). Mrs. Lata Shah's will names two executors. The estate earns Rs. 5,00,000 in a tax year, and Rs. 1,20,000 of it is distributed to a specific legatee in that year.
- As there are two executors, the income of the estate is chargeable in their hands as an association of persons (sub-section (1)).
- The total income of the estate for the year excludes the Rs. 1,20,000 distributed to the specific legatee: Rs. 5,00,000 minus Rs. 1,20,000 = Rs. 3,80,000 (sub-section (6)). The Rs. 1,20,000 is included in the legatee's total income for that tax year.
- The assessment of the executors in this capacity is separate from their assessment on their own income (sub-section (4)).
Need help after a death?
Tax obligations of a deceased person can include pending assessments, returns for the year of death and income of the estate after death. Families often do not know which of these they have inherited. Our team can help the legal representative or executor identify what is due, what is pending and in whose name it must be dealt with. See our income tax return filing service.
Key takeaways
- The legal representative pays what the deceased would have owed, in the like manner and to the same extent, and is deemed to be an assessee.
- Proceedings against the deceased are deemed to be against the legal representative and continue from where they stood.
- Liability is limited to the extent the estate can meet it, but a representative who charges or disposes of estate assets while tax is unpaid is personally liable up to the value of the asset.
- An executor is taxed on the estate's income as an individual (one executor) or as an association of persons (more than one).
- The executor takes the residential status of the deceased for the tax year of death, and the executor's estate assessment is separate from his own.
- Income distributed to a specific legatee in the year is excluded from the estate's income and included in the legatee's.
Read next
- Sections 303 to 306: representative assessees and agents of non-residents
- Sections 307 and 308: tax where shares of beneficiaries are unknown and oral trusts
- Sections 309 to 311: members' shares in an association of persons
- Chapter XVII: special provisions relating to certain persons
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.