top of page
Search

Why & How to File Income Tax Return(ITR) of Deceased?



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

Connect with us

  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube

Incubated at MNIT Innovation and Incubation Centre

ww1.png
ww30.png

We are recognized by DPIIT as a startup.

Startup-India-creates-5-5-lakh-jobs-and-recognises-50000-startups-in-5-years.png
857-8570158_make-in-india-programme-make-in-india-logo.png

Disclaimer

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject Myrupaya.in or its owners/affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by us based upon projections which have been determined in good faith by Myrupaya.in its administrators and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. Myrupaya.in does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared based upon projections which have been determined in good faith and sources considered reliable by Myrupaya.in. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

bottom of page