Filing an income tax return for a deceased individual may sound unusual, but it's necessary if they had taxable income. The responsibility falls on their legal heir or representative to file this return for income earned up until their passing. Let's walk through this process step-by-step.
Understanding Legal Heirs
A legal heir is someone who represents the deceased's assets. To register as a legal heir, you need one of the following documents:
Legal Heir Certificate from a court or local revenue authority
The deceased's registered Will
Family pension certificate from the State/Central government
Surviving family member certificate, translated and notarized if not in English/Hindi
Registering as a Legal Heir
Here's how to register as a legal heir on the income tax website:
Log In: Visit the income tax e-filing portal. Use your ID and password to log in.
Start Registration: Navigate to 'Authorized Partners' > 'Register as Representative' and choose 'Let's Get Started.'
Create a Request: Select 'Create New Request.'
Enter Details: Fill in the category, PAN details, date of death, and reason for registration.
Upload Documents: Attach the necessary documents.
Submit: Click 'Proceed' and 'Verify the Request,' then 'Submit Request' to receive acknowledgment.
Note: Clearly state the 'Reason for Registration' as a representative assessee.
Required Documents for Filing ITR
You'll need:
copyright
The deceased's PAN Card
Your self-attested PAN Card
Legal Heir Certificate
Any order issued in the deceased's name, if applicable
Approval Process
Once submitted, the e-filing administrator reviews your request. If approved, you can access all services for both the legal heir and the deceased. If rejected, you'll receive a reason and can make necessary corrections.
Filing ITR as Legal Heir
Upon approval, file the return just like you would for an individual. Use e-verification methods like Aadhaar OTP or net banking, or manually sign the acknowledgment and send it to the Central Processing Centre in Bengaluru.
Calculating the Deceased Person's Income
Calculate the deceased's income from the start of the fiscal year to the date of death. Use bank statements and other documents to estimate if necessary. Any income from inherited assets after their death is taxable to the legal heir and should be included in your own return.