CAF-2 · Chapter 12 · Question 2 of 15
Mr. Ahmed died leaving behind an estate worth Rs. 2,000,000. His outstanding income tax liability calculated up to the date of his death was Rs. 3,500,000. What is the extent of the tax liability for his legal representative?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) The legal representative is liable to pay Rs. 2,000,000, limited to the extent of the deceased's estate.
Explanation
The legal representative is liable for any tax that the deceased would have become liable for, but this liability is strictly limited to the extent to which the deceased's estate is capable of meeting the liability.
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