New Delhi: When a person passes away, their income tax responsibilities dont end with them. A legal heir or representative, often a spouse, child, or close relative can file the income tax return on their behalf.
To do this, the heir must be officially recognized by the Income Tax Department usually by submitting documents like a legal heir certificate, succession certificate, a copy of the will, or a notarised affidavit.
How to Register as a Legal Heir
Before filing the income tax return for someone who has passed away, the legal heir needs to register on the income tax e-filing portal. This is done by logging in with their own account and uploading key documents such as the deceaseds death certificate, PAN card, and a legal heir certificate. Once these documents are verified and approved by the Income Tax Department, the heir will be allowed to file the return on behalf of the deceased.
How to File ITR for a Deceased Person
The return should be filed as if the deceased person were alive.
All income earned up to the date of death must be reportedthis may include:
– Salary
– Pension
– Bank interest
– Any other taxable income
The legal heir can claim all applicable deductions and exemptions the deceased was eligible for.
It is the heirs responsibility to accurately report the income and file the return on time.
The return is filed under the legal heirs login on the income tax e-filing portal, once their status is approved.
How to Claim a TDS Refund for a Deceased Person
If the tax deducted at source (TDS) from the deceased parents income is more than the actual tax they owed, the extra amount can be claimed as a refund through the income tax return. Once the refund is approved, it will be directly credited to the legal heirs bank account. Thats why its important for the legal heir to update their bank details in their name on the e-filing portal while registering.
Tax Responsibility After Death
After a person passes away, their legal heir is responsible for paying any tax due on the income reported in the return. However, this tax must be paid from the deceaseds estatethe assets and money left behindnot from the heirs personal funds. If the estate doesnt have enough value to cover the tax, the liability is limited to whats available in the estate. This means the heir wont have to pay more than what they inherit.
Handling the income tax return after a loved ones passing can feel overwhelming, but its an essential step in managing their financial affairs responsibly. Taking the time to understand the process not only helps avoid legal complications but also ensures that any rightful refunds are claimed and all dues are settled properly.