Nobody, not even a deceased person, can avoid paying income tax if he or she is truly liable to pay tax on his or her income for a specific financial year. If a person dies, his or her legal heir or representative is responsible for filing an income tax return (ITR) on his or her behalf and paying any tax owed.
According to tax legislation, if a deceased person's income before capital gains exemption and deductions under Chapter VIA exceeds the minimum exemption limit, an ITR must be filed.
If the deceased individual owned a foreign asset, deposited more than Rs 1 crore in a current account during the financial year, spent more than Rs 2 lakh on a foreign trip, or paid more than Rs 1 lakh in energy bills, ITR filing is required.
The legal heir is also liable for any penalties, fees, or interest incurred as a result of non-filing or late filing of an income tax return. The legal heir shall be held accountable if the ITR contains any errors.
A legal heir's tax responsibility:
Although the legal heir is responsible for paying taxes owed on the deceased's income until his or her death, the legal heir's duty is only limited to the amount of the assets he has inherited. If a person obtains Rs 10 lakhs as a portion of his father's property and his father's tax liability is Rs 14 lakhs, he is not responsible to pay more than Rs 10 lakhs in taxes. The legal heir's liability is limited to the value of the assets inherited.
The legal heir is also responsible for paying any penalty, fine, or interest that the deceased would have owed if he hadn't died. However, in such instances, a legal heir's liability would be limited to the assets he acquired from the deceased.
How to file a deceased person's ITR:
Registration as a legal heir on the income tax website is required to file an ITR on behalf of a deceased person. Both the deceased's and legal heir's PANs must be registered on the e-filing site for registration. The following documents will be required to complete the registration process:
- A certified copy of the death certificate
- A copy of the deceased's PAN card
- A copy of the Legal Heir's PAN card that has been self-attested
- A legal heir certificate from the appropriate authority
The legal heir can file an ITR on behalf of the deceased once the request for registration as a legal heir is authorised by the tax administration.
Comments