The Buyt Desk
The Income Tax Act dictates timely and accurate filing of ITR. Every now and then, the Government takes initiatives to encourage citizens to file ITR. For instance, section 139AA of IT Act mandates you to link the PAN card with the Aadhaar card, a measure for efficacious and mandatory ITR filing.
As per IT Department, the ITR for a departed person until his last day is also mandatory. The legal heir of the departed person becomes the tax assessee. He files an ITR and pays tax on the behalf of the dead person. In case the legal heir does not file the ITR, the IT Department proceeds in the same manner as when a living person fails to file his ITR. This means as the legal heir, if you do not file the ITR calculating the tax until his last day, you will be liable to pay penalty, interest, and late fee along with the impending tax.
What are the requirements to register as a legal heir for a deceased person?
Before registration as a legal heir, you should have the following information at hand:
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Login details of your account on the IT Department e-filing website
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Demographic and personal details of the departed person
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His PAN card number and the bank account details
Steps to register as the legal heir for a deceased person
Before you can assess tax, file ITR, and pay tax for the deceased person, register as their legal heir online.
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Login https://www.incometax.gov.in/
iec/foportal/ with your credentials. -
Go to “My Account”.
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Then go to “New Request”. Here, you can register as the legal heir for the deceased person. Click on “Register on behalf of the deceased” and proceed.
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Fill the personal information, PAN card and bank account details of the departed person.
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Once the request is approved, you will receive a SMS on the registered mobile phone.
The Process of filing the ITR for a deceased person
After registration, you have to submit the ITR just as you do it for yourself. Download the suitable ITR form from the IT e-filing website. Fill the form with personal, income, bank, interest, tax assessment and other information of the deceased person. Generate the XML file for the form and upload on the website. Digitally sign the form and submit it.
How to calculate Income Tax for a deceased person?
The process of calculating the income of the deceased person is the same as any other person. The differentiating factor is the period for which the tax is calculated. For a person who is no more, the tax is calculated only until the date he was alive, instead of the complete year.
In most cases, the legal heir is unaware of the responsibility to file ITR for a deceased person. Moreover, earlier the process for such a ITR was unclear. Filing a tax return in the name of a person, who has passed away, is not correct. Above described process is the right way to fill Income Tax Return for a deceased person.
