Karachi, September 2, 2025 – The Income Tax Ordinance, 2001 provides a clear framework regarding the return filing obligations in cases where a person, liable to file an income tax return, passes away during the tax year 2025.
According to Section 114 of the Ordinance, the responsibility of filing an annual income tax return does not lapse upon death. Instead, it may be transferred to the legal representative or executor of the deceased’s estate. This ensures that all tax liabilities are properly assessed and cleared in compliance with the law.
Subsection (3) of Section 114 states that the Commissioner of Inland Revenue may issue a written notice to a legal representative requiring them to furnish a return for a period of less than twelve months if:
(a) the individual has died;
(b) the person has been declared bankrupt or has gone into liquidation;
(c) the individual intends to leave Pakistan permanently; or
(d) the Commissioner finds it appropriate under special circumstances to require such filing.
This provision ensures that tax obligations are settled promptly and that no discrepancies arise in the official financial records of the deceased. Tax experts advise heirs or legal representatives to consult professionals to ensure accurate filing and timely compliance.
Disclaimer: This article provides general information on return filing obligations and should not be considered legal advice. For case-specific guidance, consultation with a tax professional is recommended.