When a person passes away, their legal heir or representative becomes responsible for filing their income tax return for the income earned up to the date of their death. This process can be complex and emotionally challenging, but with the right information and guidance, it can be managed effectively.
Identifying the Legal Heir
The first step in filing income tax returns for a deceased person is to identify the legal heir. A legal heir is someone who represents the deceased's assets and can be identified through various documents, such as:
Legal Heir Certificate
The deceased's registered Will
Family Pension Certificate
Surviving Family Member Certificate
Registering as a Legal Heir on the Income Tax Website
Once you have been identified as the legal heir, you need to register as such on the income tax website. Here's how:
Log in to the income tax e-filing portal using your ID and password.
Go to 'Authorized Partners' > 'Register as Representative' and select 'Let's Get Started.'
Choose 'Create New Request' and fill in the required details.
Upload the necessary documents and submit the request.
Gathering the Required Documents
To file the income tax return, you will need the following documents:
The deceased's copyright
The deceased's PAN Card
Your self-attested PAN Card
Legal Heir Certificate
Any order issued in the deceased's name, if applicable
Waiting for Approval
After submitting your request, the e-filing administrator will review it. If approved, you will have access to all services for both the legal heir and the deceased. If rejected, you will receive a reason and can make the necessary corrections before resubmitting.
Filing the Income Tax Return
Once your request is approved, you can file the return as you would for an individual, using e-verification methods or manually signing the acknowledgment.
Calculating the Deceased Person's Income
To calculate the deceased's income, consider the period from the start of the fiscal year to the date of death. Use bank statements and other documents to estimate the income if necessary. Any income from inherited assets after their death is taxable to the legal heir and should be included in your own return.
Understanding the Legal Heir's Tax Liability
As the legal heir, you are responsible for paying the taxes due on the deceased's return, but only up to the value of the inherited assets.
Dealing with Penalties or Demands
The legal heir is also responsible for any penalties or fines the deceased would have owed, but only up to the value of the inherited assets.
Seeking Professional Help
Filing income tax returns for a deceased person can be a complex process. If you need personalized assistance, consider contacting a tax advisor who can guide you through the process and ensure accuracy and compliance with all legal obligations.