Income tax dept threatens to auction Jayalalithaa's assets for dues

CHENNAI: The income tax department has said the attached properties of former chief minister J Jayalalithaa, including her Poes Garden residence, will be auctioned for recovery of pending dues of Rs 9 crore income tax and Rs 11 crore wealth tax if her legal heirs, J Deepa and J Deepak, fail to pay the dues.

A submission to this effect was made in Madras high court on Thursday, in response to a plea moved by Deepa challenging a demand notice issued by the department dated Aug 4, 2025, demanding payment of Rs 13.69 crore tax arrears of Jayalalithaa.


“The attachment of the property was done during the lifetime of Jayalalithaa. If the arrears of tax is not paid by the persons who are having interests in the properties of the late chief minister, then the department will proceed against the property by bringing the property into auction as per the procedure contemplated under the Income Tax Act,” senior standing counsel for the department A P Srinivas said.

According to the department, in a detailed communication dated Aug 4, 2025, the demand of Rs 13.69 crore under both income tax and wealth tax assessments was communicated to the petitioner and her brother, J Deepak. As per the provisions of the Income Tax Act, no limitation of time applies to the recovery of demand once it is raised.

“The latest income tax demand as per ITBA, inclusive of tax and Rule V interest as on Jan 31, is Rs 9 crore, and wealth tax is Rs 11.08 crore. Further, Rule 5 of the Income Tax Rules interest is applicable in the recovery proceedings till the date of payment,” Srinivas said.

Justice C Saravanan, before whom the case came up for further hearing on Thursday, adjourned the hearing to Feb 2.

As per Section 159 of the Act, the liabilities of the deceased assessee are to be discharged by the legal representative to the extent to which the deceased assessee’s estate can meet the liability, he added.

Even in a petition moved by Deepa and Deepak challenging the land acquisition proceedings of ‘Veda Nilayam’ for converting it into a memorial, the high court, through an order dated Nov 24, 2021, permitted the department to proceed with recovering any arrears of tax payable by Jayalalithaa which is chargeable on her estate as per law, he said.

Deepa and Deepak, after getting the estate of Jayalalithaa, ought to pay the tax dues, but they are filing writ petitions after writ petitions, even against tax due intimation letters, the department said.