When a person dies, there may be some income which was received by him or accrued to him upto his death. There may also be certain assessment or other proceedings pending against him, in respect of such income. For certain years, the filing of returns may be pending when he dies. Under the scheme of income taxation under the Income Tax Act, the liability of the deceased and pending proceedings as also the responsibility of filing the return relating to such period do not lapse with the death, but continue to be perused through his legal representative.

Section 159 of the Income Tax Act, 1961 lay down that where a person dies, his legal representative shall be 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.