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ITR filing: Does I-T return of a deceased person need to be filed? Check how it can be done

The legal heir represents the assets of the deceased person and is either declared by the registered Will or by a court. The registration for a legal heir can be done on the income tax department's portal. After registering on the I-T Department's portal, the person can file the deceased's ITR.

ET Now Digital

Updated Jul 20, 2022, 07:10 IST

New Delhi: The date to file income tax returns is nearing and yet taxpayers have so many queries pertaining to the same, one being about filing I-T return of a deceased person. Yes, the tax liability of the person remains even after their death, so it needs to be fulfilled.

Tax received on the income that is being received by the family on behalf of the deceased person would need to be paid if it goes beyond the basic exemption limit, which is Rs 5 lakh per annum currently.

What happens if the ITR of the deceased is not filed?

There would be repercussions and the legal heir would be liable to pay the penalty or fines. Other than that, they may also face penal consequences. The heir of the deceased would have to pay the penalty on the tax liability of the latter. If the liability of the deceased falls in a higher tax bracket, then the heir may end up paying their entire share of the inheritance.

Let’s assume that the heir received Rs 5 lakh from the share of the deceased person's property and the tax liability of the deceased is Rs 15 lakh. The heir will only be liable to pay a maximum of Rs 5 lakh as tax/penalty for the deceased legally.

It must be noted here that the personal money and property of the heir cannot be taken into account to reduce the remaining liability of the deceased.

Who is a legal heir?

The legal heir represents the assets of the deceased person and is either declared by the registered Will or by a court. The registration can be done on the income tax department's portal. The following documents will be accepted as legal heir certificates:

Legal heir certificate issued by the local revenue officer.
A certificate by the court of law.
A certificate of the surviving family members issued by the local authorities/ Municipality/ Nagar Palika.
Registered will
Letter issued by the banks on their letterhead, certifying that the person is the legal nominee of the deceased.

How to register as legal heir on I-T Department's portal?

- Visit the I-T department's portal

- Log in using legal heir’s credentials

- Go to 'Authorised partners', then to 'Register as Representative' and click on 'Let's get started'

- Select 'Create new request'

- Enter your personal details

- Upload the required documents like the death certificate, PAN Card of the deceased and the legal heir certificate.

- Click on 'Proceed' and then 'Verify the request'

- Click on 'Submit request'

You will receive an acknowledgement receipt from the I-T department.

Once the request is approved, the legal heir can file the ITR themselves or can seek the help of a chartered accountant (CA).

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