What are Liability of partners of limited liability
partnership in liquidation? Who are Executors? Section 167C and 168 of Income Tax Act 1961
Liability of partners of limited liability partnership
in liquidation and Executors are
defined under section 167C and 168 of Income Tax Act 1961. Provisions under these Sections are
Section 167C of Income Tax Act "Liability of
partners of limited liability partnership in liquidation"
Section 167C. Notwithstanding anything contained in the
Limited Liability Partnership Act, 2008 (6 of 2009), where
any tax due from a limited liability partnership in respect
of any income of any previous year or from any other person
in respect of any income of any previous year during which
such other person was a limited liability partnership cannot
be recovered, in such case, every person who was a partner
of the limited liability partnership at any time during the
relevant previous year, shall be jointly and severally
liable for the payment of such tax unless he proves that the
non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part in relation to the
affairs of the limited liability partnership.
[Explanation.-For the purposes of this section, the
expression "tax due" includes penalty, interest or any other
sum payable under the Act.]
Section 168 of Income Tax Act "Executors"
Section 168. (1) Subject as hereinafter provided, the income
of the estate of a deceased person shall be chargeable to
tax in the hands of the executor,-
(a) if there is only one executor, then, as if the executor
were an individual; or
(b) if there are more executors than one, then, as if the
executors were an association of persons;
and for the purposes of this Act, the executor shall be
deemed to be resident or non-resident according as the
deceased person was a resident or non-resident during the
previous year in which his death took place.
assessment of an executor under this section shall be made
separately from any assessment that may be made on him in
respect of his own income.
(3) Separate assessments shall
be made under this section on the total income of each
completed previous year or part thereof as is included in
the period from the date of the death to the date of
complete distribution to the beneficiaries of the estate
according to their several interests.
(4) In computing the
total income of any previous year under this section, any
income of the estate of that previous year distributed to,
or applied to the benefit of, any specific legatee of the
estate during that previous year shall be excluded; but the
income so excluded shall be included in the total income of
the previous year of such specific legatee.
Explanation.-In this section, "executor" includes an
administrator or other person administering the estate of a