In a landmark move to support the families of taxpayers, the Government of Bihar has launched the Bihar Taxpayer Accidental Death Grant Scheme, 2025. Officially notified on July 16, 2025, the initiative underscores the state’s recognition of the crucial role non-corporate taxpayers play in Bihar’s economic growth.
Under this scheme, a financial assistance of Rs. 5 lakh will be provided to the legal heir or nominated dependent of a registered non-corporate taxpayer in the unfortunate event of accidental death. The primary objective is to ease the financial burden on bereaved families while honoring the contributions of individual taxpayers to the state’s revenue framework.
Upon implementation of this scheme, the Bihar State Registered Dealers Accidental Death Grants Scheme, 2014 shall stand discontinued.
Non-Corporate Taxpayer means a taxpayer, other than registered under Indian Companies Act, 1956, whose business Enterprise is registered under Bihar Value Added Tax, 2005 and in the state and central jurisdiction of Goods and Services Tax Act 2017, in the state of Bihar.
Business Enterprise means a business under legal status of Individual or Hindu Undivided Family (HUF) or Partnership firm.
Applicability and Eligibility
Non-corporate Taxpayers are required to meet the essential prerequisites, for unlocking the benefits of this scheme as under:
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Purpose
Provide financial assistance and social security support of Rs. 5 lakh to the nominated or legal dependents of registered non-corporate taxpayers in Bihar who die as a result of an accident.
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Applicable to
Applicable for registered non-corporate taxpayers who are:
- Registered under the Bihar Value Added Tax Act, 2005 (if applicable in past periods), and
- Registered under the Goods and Services Tax (GST) Act, 2017 — either under State (SGST) or Central (CGST) jurisdiction in Bihar
- Have filed all required returns for both the preceding financial year and the current financial year (year of the accident)
- Have admitted and paid due taxes within the prescribed time
- Have a non-zero taxable turnover during those periods.
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Eligible Beneficiaries
The following individuals are recognized as legal/ nominated dependents:
- Spouse (widow/widower)
- Dependent sons or unmarried daughters
- Parents of the deceased
- In case of unmarried taxpayers, both parents jointly
Process for Lodging of Claim
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Submit Application
- Nominated or legal dependent must submit Form-I to the circle-in-charge of the concerned Commercial Taxes Circle.
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Verification
- The circle-in-charge will examine and verify the claim for authenticity and eligibility.
- After verification, the circle-in-charge will forward the claim using ‘Form-II’ to the Additional Commissioner of State Tax (Administration) for counter-signature and recommendation.
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Recommendation & Approval
- Additional Commissioner reviews and recommends the claim to the Commissioner, Commercial Taxes Department.
- Upon satisfaction, the Commissioner issues an official order directing payment of the grant from the budget.
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Payment
- Amount is paid to the nominated or legal dependent through cheque, demand draft, or direct bank transfer via the circle-in-charge.
- The grant amount shall be disbursed within three months from the date of submission claim.
Note:
- In case of murder, the application can be filed only after the chargesheet is filed in court.
- For other accidental deaths, the application must be accompanied by the post-mortem report and relevant death certificates.
References
Notification No S.O. No. 146, dated 16th July 2025 issued by Commercial Tax Department
Disclaimer
The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.