We all know the rules and regulations about filing IT Return when we are alive. However, many of us don’t know what the Income Tax rule states in case the death of the taxpayer. It is common that after the death of the taxpayer, his/her spouse, legal heirs or family members never filed an IT return. But it is the responsibility of spouse, legal heirs or family members to file the IT Return!!!
You never found any advertisement or publication about this from IT Department too. However, there is a section in Income Tax that specifically mentions the rules about this situation. The whole details are available in section 159 of the Income Tax Act, 1961 (Act). According to section 159 of the Income Tax Act, 1961 (Act), if a person dies, then his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the similar manner and to the same extent as the deceased.
Points to remember–
How to file the IT return on behalf of the deceased IT Payee?
1) The first step is to get the Legal Heir Certificate. According to a law below documents, are considered as valid.
2) Calculate the income of the deceased (exactly like an individual calculation and there is no change in this process). Before proceeding further, collect the below details as a proof.
3) Get the notarized affidavit for filing IT return on behalf of a deceased.
So documents required for filing IT Return on behalf of the deceased are as below.
Scan all above documents for uploading purpose.
4) Get the Digital signature Certificate (DSC) of legal heir. The list of such DSC providers is available HERE.
5) Once you completed above steps then you have to file IT Return. There are two types to file. One is online and another is offline. I will explain the both.
ONLINE PROCEDURE
The whole procedure is explained in the e – File portal. The same I am explaining below.
OFFLINE PROCEDURE
The legal heir must visit the concerned assessing officer (AO). Submit the documents, which I explained above. After verification, AO will approve to file the IT return. Once the legal heir gets the approval, then he can file the return on his own or can take the help of tax experts. The name should be mentioned as “late (name of deceased) through legal heir (name of the person filing)”.
Overall, the process is not so simple. Because once the taxpayer dies, then dependents must collect all documents listed above. After that, they must take an initiative to file the IT Return. Hence, it is best to advise your spouse or legal heirs about this important aspect of income tax.
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My wife expired in May 2021 due to covid, she was proprietor of a firm and we have a 12yr daughter only and she didn’t possess any property or asset, We received insurance amount and PPF , being nominee. The ITR of AY 2021-22& 22-23 is not filed. Legal heir certificate is also not made, because it was not required anywhere. Will we have to file her ITR
Dear Rajat,
The amount received to you due to your spouse death is YOUR'S money. Hence, you have to show in your ITR.
The financial year is FY22-23 and Assessment year is FY23-24 sir.
Dear Bhuvan,
Let me know your doubt.
Hello sir
The legal heir shall be eligible for the income tax slab, deductions and rebate that the deceased would have been granted under Income tax “.
Can you please tell me as my father expired on August 2022 he has pension income . So can I purchase 80 c now as legal heir on his behalf.
Thanks in advance
Dear Bhuvan,
Check the financial year also.
Sir I handed over my 100 shares of a Ltd Co.without consideration to one my known person for custody without any Transfer Deed. The shares are still in my name & I am regularly getting dividend on those shares till March 2021. SEBI has prohibited physical transfer of shares as on March 2018.
Now I have come to know that the said petson had expired in OCT/Nov.2020. I donot know the fate of my shares or the whereabouts of deceased's legal heir.
SIR MY QUESTION IS WHETHER I CAN APPLY AND GET DUPLICATE SHARES, STANDING IN MY NAME (TILL DATE) WITH THE COMPANY WITHOUT ANY RISK OR WORRIES.?
shares
Dear Avinash,
Better you contact the company and it's R&T Agent for clarity.
Dear Basavaraj Tonagatti jee,
I have gone through your article and found it very useful. I have gone through the replies also. I have few Questions in my mind and shall feel obliged if you kindly guide me:
My wife who is a tax assessee has expired on 09.02.2021.
1. She made tax Saver Deposit with Bank for Rs 150000/- in April 2020 but since she expired, I got it paid before maturity on 22.03.2021 i.e during the same financial year. Will she be eligible for Exemption under section 80 C or not for this investment?
2. In case, I choose to go for new regime, the exemption of 30% for repair and maintenance of house would be exempted or not as she had income only from rent and interest.
3. She had a registered will and I am the absolute beneficiary of all the assets. whether Registered will document is sufficient to prove that I am the legal heir?
4. All assessments are clear till financial year 2019-2020 (AY 2020-2021)
With regards
R.K.GUPTA
Dear Ram,
1) Yes.
2) It is available.
3) Yes, sufficient.
Is there any due date for intimating death of the PAN holder to the income tax department?
Dear Nilesh,
NO. But better you inform with the same FY.
Respected sir, My father want to stop business . He transferred assets on his name to my name before a week but my brother wanted to continue the business the Rc is on my father's name. Is it right in future is there any risk after my father
Dear Rajpushpam,
Better you consult a lawyer.
sir , my father died on 18/1/2018 and after death (1). we file itr for ay 2018-19 by using father login id and paid taxes. (2) and ay2019-20 no income not file itr (3) and fy2019-20 get a salary arear of 80000 and employer deducted tax on it 8000 so please provide a way of file itr for ay2020-21 and process of close pan card.
Dear Shiv,
You can still file ITR and close it.
Dear sir
My father expired on 7th june 2015 .
My CA filed his return for the fy 2015-16
Based on the request of the branch manager we did not transfer his fixed deposits.
Since last 3 years his tds is reflected in form 26as.
We have also not surrendered his pan and aadhar.
Pls suggest what to do
Dear Ramnath,
It is your fault that you not disclosed it to bank and not surrendered his PAN and Aadhaar. Now do the same immediately.
Assessee died in june 2019 , return for assessment year 2018-19 is filled as a legal heir in September , 2019, now for assessment year 2019-20 the return for 3 months is not accepted as legal heir ...what is the procedure to file return for assessment year 2019-20..
Hi,
My father passed away in September 2019
till AY 2019-20 he filed his return
He had only Pension and FD Interest Income.
Now all the FD's transferred to my Mom
pension also will come to mom hence forth.
Still do we need file return for my dad?
do we need to show the source of income for my mom as hence forth return to be filed in her name?
Regards,
Meena
Dear Meena,
Yes, you have to file ITR on behalf of your father.
Dear Siddharth,
It should be considered as the legal heir income and accordingly must be filed.
So if a person has died in July 2020, for FY19-20 the legal heir must file IT returns even though the person was living for that financial year? Kindly advice as we are in the process of filing the IT return which is to be done by 30-Nov-20
Dear Mabel,
Yes.
Thank Basavaraj. We will file return as legal heir for FY19-20 then.
However, for my better understanding, will that pose any issues while filing IT returns again as a legal heir for FY20-21? I thought I read somewhere a legal heir can file return for the deceased only once and then the account of the deceased is deactivated.
Secondly, my father is now receiving the family pension. So, we will be uploading the pension order section 3 (which provides details of family pension payable on the death of the pensioner.) while registering as legal heir. Is that ok? Also, my father and we 3 children are the legal heirs of my deceased mother. Now, can any one of us file her IT return given that we are uploading the Pension order or only my father can file her IT return. Please advice.
Dear Mabel,
It is true that it is possible only once. In that case, you have to not file ITR for the year where he missed.
"In that case, you have to not file ITR for the year where he missed." means? for which year are you suggesting that we don't file ITR?
Can't I file her IT return for FY19-20 by just adding myself as a representative by login to my mother's account and then file her tax returns? Will that be wrong?
Dear Mabel,
"for which year are you suggesting that we don’t file ITR?"-For the year which he missed to file ITR.
sorry I think we have lost track.. this is a case of my deceased mother's IT return filing. We have never missed to file her ITR. She has filed her ITR regularly.
Back to my question - since we can file her ITR as a legal heir only once which we will do so in FY20-21,
For FY19-20, Can’t I file her IT return by just adding myself as a representative by login to my mother’s account and then file her tax returns? Will that be wrong?
Dear Mabel,
This is what I am trying to say. If she not filed ITR for FY2019-20 and death happened in FY 2019-20, then you can file ITR for FY 2019-20.