Tax Filing of Deceased Family Member

Iif a person dies during a financial year, if he or she made any income during that year,  income tax return must be filed.

Any individual who earns an income that is over the minimum amount that is exempt from the collection of income tax is required to pay income tax and submit an income tax return under the Income Tax Act.

After a person's death, who will pay income tax and file a return?

The solution to this issue is found in Section 159 of the Income Tax Act, which states that it is the legal successor of the deceased's obligation to submit income tax returns and pay any income tax due on his or her behalf.

For the purposes of Income Tax, the legal heir would be considered the assessee, and all of the requirements of the Income Tax Act would apply to him in the same way as they would to the deceased assessee.

The legal heir must first register as the deceased's legal heir on the income tax website, after which he or she can submit the ITR on the deceased's behalf.

Calculation of the Deceased's Income

The deceased's income would include all earnings from the beginning of the year until his or her death. In the hands of the legal heirs, all income derived from assets inherited from the deceased is taxed.

If a notice was sent to the dead before his death, the notice's actions against the legal heir might be maintained from the date of the deceased's death. On behalf of the dead, the legal successor is individually accountable for all taxes. The dead is responsible for any penalties, interest, or other amounts owed.

The sum owed to the Income Tax Authorities on behalf of the dead by the legal successor should not, however, exceed the assets inherited by him. To put it another way, the legal heir is not liable for paying the fees out of his own pocket

Uploading Documents for Legal Heir Registration

At the time of legal heir registration, all of the following documents must also be submitted:

Death Certificate Copies

a copy of the deceased's PAN card

In the presence of a Notary public, self-attested PAN Card copy of the legal heir Legal Heir Certificate or Affidavit

Any of the following papers can be presented as proof of legal heirship for the purpose of obtaining a Legal Heir Certificate:-

Surviving Member Certificate issued by the Local Authority Legal Heir Certificate issued by the Court of Law

Letter issued by the Banking or Financial Institution on their letterhead, with official seal and signature affixed, stating that so and so holding PAN(s) was/were the nominee(s) of the deceased to the account/instrument(s) held in the name of the deceased with the institution and the same was not withdrawn until the deceased died

Following the submission of these papers, an application will be forwarded to the Income Tax Authorities, who will analyse the materials and accept or reject the application. An email is sent to the registered email address with the approval/rejection data.