Use Code: ITR40
File ITR Today
The death of a taxpayer does not eliminate their income tax obligations. If a person passes away during a financial year, any income earned up to the date of death may still need to be reported to the Income Tax Department. In such cases, the responsibility of filing the Income Tax Return (ITR) falls on the legal heir of the deceased. Let us read more.
Only the legal heir can file the deceased's income tax return (ITR) on his/her behalf for the income earned till the date of death. The heir must register as a representative assessee on the e-filing portal and subsequently ensure the registration of both the deceased's and the heir's Permanent Account Numbers (PANs). A legal heir is a person who inherits the assets and liabilities of the deceased under applicable succession laws. Depending on the circumstances, the legal heir may be a spouse, child, parent, or another eligible family member.
The legal heir must file the deceased person's ITR if the income earned up to the date of death exceeds the applicable basic exemption limit or if return filing is otherwise mandatory under the Income Tax Act
Step 1: Log in to the e-Filing Portal
Sign in using your own PAN and password on the Income Tax e-filing portal.
Step 2: Register as Representative Assessee
Navigate to the "Authorized Partners" section and select "Register as Representative Assessee."
Step 3: Create a New Request
Choose the category "Legal Heir" and enter the details of the deceased taxpayer, including PAN and other required information.
Step 4: Complete Verification
Verify the request using the OTP sent to your registered mobile number and email address.
Step 5: Submit Documents
Upload the required supporting documents and submit the request for approval.
Step 6: Wait for Approval
The Income Tax Department will review the application and notify you through email and SMS once the request is approved.
The documents required to file ITR on behalf of a deceased person are as follows:
The size of the zip file containing these documents must not exceed 5 MB
Following completion of the legal heir registration process, your request will be forwarded to the e-filing administrator for examination. They will carefully assess the provided information and documents, ultimately approving or rejecting your claim based on its validity. After approval, you can access the full range of services available for both yourself and the deceased. If your request is denied, you will receive a detailed notification outlining the reason, which could include discrepancies in uploaded information or incomplete documentation. By understanding the rejection reason, you can take appropriate steps to address any issues and resubmit a more accurate claim.
After approval as a legal heir:
The way to compute the income of the deceased person and of the legal heir is a bit different. Let us discuss it below:
| Income of deceased till date of death | This part of the income will be taxable in the hands of the deceased person as if he/she is alive. The return will be filed by the legal heir on his/her behalf. |
| Income after date of death |
This income will become taxable in the hands of a legal heir. In other words, a legal heir should include this income in his total income and pay tax on it. |
The best way to understand this concept is through an example. Mr. Ajay Sharma earns income from 2 sources, rent of 60,000 p.m. and interest income of 20,000 p.m. Due to some unfortunate event, he died on 20th June 2023. Mr Ajay's legal heir is his wife Mrs. Sharma. The income of rent and interest earned by Mr. Ajay shall be bifurcated in a manner as follows:
The department can start all proceedings against you which could have been initiated if the deceased person was alive.
It is important to note that, your liability as a legal heir can't exceed the value of assets that you inherited from the deceased. For example, say you have received ₹1,50,000 as legal the heir. Then you can't be asked to pay any liability exceeding ₹1,50,000 on behalf of the deceased.
Only the legal heir or representative assessee of the deceased person can file the Income Tax Return (ITR) on their behalf after obtaining approval from the Income Tax Department.
Yes, if the deceased person's income up to the date of death exceeds the basic exemption limit or meets any other return filing criteria prescribed under the Income Tax Act.
A legal heir must log in to the Income Tax e-filing portal, register as a representative assessee under the "Legal Heir" category, upload the required documents, and obtain approval from the Income Tax Department.
Generally, the legal heir must provide the deceased person's death certificate, PAN card, the legal heir's PAN card, and a legal heir certificate or other valid proof of succession.
Only the income earned by the deceased person up to the date of death should be reported in their ITR.
Income generated from inherited assets after the date of death is usually taxable in the hands of the legal heir or beneficiary who receives that income.
Generally, one legal heir acts as the representative assessee and files the return on behalf of the deceased. Supporting documents may be required to establish the authority to act on behalf of other heirs.
The return can be verified electronically through the approved verification methods available on the Income Tax e-filing portal after legal heir registration is approved.
The Income Tax Department may initiate proceedings for non-compliance. However, the legal heir's liability is generally limited to the value of the assets inherited from the deceased.
Yes, if excess tax has been paid by the deceased person, the legal heir can file the return and claim the eligible refund on behalf of the deceased.
