The Government of Bihar, through Notification No. 146 dated July 16, 2025, has introduced the “Bihar Taxpayer Accidental Death Grant Scheme, 2025.” This scheme aims to provide financial assistance to the legal dependents of registered Non-corporate Taxpayers (individuals, HUFs, or partnership firms) who suffer accidental death. It recognizes the significant role played by taxpayers in economic development through their collection of taxes on behalf of the state.
Eligibility Criteria:
This scheme applies exclusively to Non-corporate Taxpayers who are residents of Bihar and have properly filed their tax returns for the previous and current financial years, paying the admitted taxes on time. To qualify, taxpayers must not have any outstanding undisputed tax/interest/penalty dues, should have taxable turnover above zero, and must not have been convicted under certain specified tax-related offenses.
Definition of Accidental Death:
The scheme clearly defines an “accident” as death resulting from external violent causes such as train or road accidents, electric shocks, snake bites, drowning, burns, falls, wild animal attacks, terrorist activities, criminal attacks, or atomic radiation. However, it explicitly excludes self-inflicted injuries, suicide, natural deaths, deaths caused while committing crimes, deaths from disease, or accidents under intoxication. The Commissioner of State Tax retains discretion to declare other deaths as accidental on a case-by-case basis.
Grant Amount and Distribution:
Eligible beneficiaries under the scheme will receive an ex-gratia payment of ₹5 lakh through crossed cheque, demand draft, or direct bank transfer. This amount will be paid to the nominated dependent or, in the absence of a nomination, to the legal dependent(s) as per the prescribed order (spouse, dependent son, unmarried daughter, parents). In the case of multiple legal spouses, the amount is divided according to succession laws.
Claim Submission and Procedure:
The nominated or legal dependent must submit an application for the grant in the prescribed ‘Form-I’ to the concerned Circle-in-Charge. Claims for accidental deaths due to murder can only be submitted after a chargesheet is filed in court, whereas other cases require submission after obtaining a post-mortem report. Supporting documents required include death certificates, FIRs, domicile certificates, registration details, and evidence of tax compliance.
Processing and Approval of Claims:
Upon receiving the claim, the Circle-in-Charge verifies the details and forwards the verified application in ‘Form-II’ to the Additional Commissioner of State Tax (Administration). The Additional Commissioner countersigns and recommends it to the Commissioner of State Tax. After satisfactory review, the Commissioner issues an office order approving payment from the allocated budget.
Payment Timeline and Restrictions:
The grant must be paid within three months from the date of claim submission. If the deceased operated more than one registered business enterprise, the grant applies only to one enterprise. Additionally, for partnership firms, the grant is only payable for the deceased partner’s dependents.
Financial Allocation and Budgeting:
Payments under the scheme are allocated from a specific budget provision each financial year, debited to the designated head under the Commercial Taxes Department. The Drawing and Disbursing Officer (DDO), Commercial Taxes Department, Patna, manages the disbursement process.
Administrative Structure and Accountability:
Administration of the scheme rests with the Commissioner of State Tax at the state level, the Additional Commissioner of State Tax (Administration) at the divisional level, and Circle-in-Charge officers at the circle level. All officials involved are accountable for their actions and may face disciplinary action if they fail to carry out prescribed duties effectively.
Implementation and Supersession:
The scheme supersedes the earlier “Bihar State Registered Dealers Accidental Death Grants Scheme, 2014.” The government retains the right to amend the scheme or issue necessary instructions from time to time to ensure its effective implementation. Beneficiaries with existing insurance policies remain eligible to receive the scheme’s benefits.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/07/Bihar-Taxpayer-Accidental-Death-Grant-Scheme-2025.pdf
