Depended Person Tax Rules: It is necessary to file income returns in his name even after the death of a person. It has processes like necessary documents, online registration and time filing returns, so that the heirs do not have any tax related problems.
When did ITR start filling
Income tax department was formed in 1922. The current Income Tax Act 1961 was implemented from 1 April 1962, which led to significant improvements in tax system and administration.
ITR Filing for Decased Person: Do you know, the dead person also has to file income tax returns? It may seem strange to hear, but if someone dies in India and his income is taxable, then it is legally necessary to fill his ITR. In this situation, his legal heir has to fill ITR on his behalf. For this, the legal heirs have to register on the income tax portal and then the tax has to be calculated and filed according to the income of the deceased. In this article, we will tell the limit of step-by-step full process, essential documents and tax liability, so that we can easily fill the ITR of the dead person.
Who is a legal heir? (Who is legal heir)
The legal heir is the one who becomes the owner of his property and right after the death of a person. Some documents are required to prove this. In which Legal Hearship Certificate issued from the court, certificate issued from local revenue officer, Surviving Family Members Certificate issued from Municipal or Municipal Council, Surviving Family Members Certificate, Registered Executive of the deceased, Family Pension Certificate (Family Pension Certificate) Pension Certificate is included. Keep in mind that many times these certificates are in local language, they have to be translated into English or Hindi and also have to be verified with notary.
Also read- ITR Filing: It is necessary to pay income tax even after earning less? Do not ignore these 5 conditions
How to register for Legal Heir on Income Tax Portal?
- Go to the income tax e-filing portal and login with the user ID and password.
- Go to ‘Authorized Partners’ and click on ‘Let’s Gate Started’ in ‘Register Edge Representative’.
- Click on Create New Request.
- Choose a category, enter the deceased’s PAN, date of death and the cause of registration.
- Scan and upload essential documents like death certificate, PAN, legal hair certificate.
- Go to Proceed and click on Verify Request.
- On Request Submit, you will get an ACKNOWLEDGMENT.
Documents required to file ITR?
- Death certificate of deceased
- PAN card of deceased
- PAN of legal heir
- Legal hair certificate
- If there is an order of a court or IT department, then its copy
What is the process of registration approval of legal heirs?
- Your request will be sent to E-Filing Administrator.
- If there is the right documents, you will get approval, otherwise the reasons for rejections will be given.
- After approval, you can file the ITR of the deceased by going to the ‘As legal heir’ mode in your login.
Also read- Is Pan-Aadhaar Missamach? Improve such names and DOB before filing ITR
How to file an ITR of dead person?
- After approval, file the ITR of the deceased in the same way that a person’s normal ITR is filled.
- Calculate the year’s income until the death of the deceased (eg salary, rent, interest and others).
- E-verify ITR from Aadhaar OTP, Net Banking or send ITR-V and send CPC to Bengaluru.
What is the limit of tax liability, what is penalty and demand case?
The liability of the legal heir will be only as much as he has inherited. For example, if inherited 8 lakh rupees and tax dues are 9.5 lakh rupees, then only a maximum of 8 lakh rupees will have to be paid. Penalty or interest on the outstanding tax of the deceased may also have to pay the heirs, but will also be limited to the value of the property.