Income Tax Return of Deceased

DEATH of a dear one is an unbearable blow. Apart from the loss his family has to confront issues relating to the transfer and distribution of the deceased’s estate, which includes all his property, assets etc. Then there are tax issues to be dealt with. These include filing of returns for income earned by the deceased till the time of death, and helping the tax department with assessment proceedings. What happens if the taxpayer dies before he or she files the returns? Do returns have to be filed on behalf of dead person,who has to file returns on behalf of dead person, how to file returns on behalf of dead person? If there are tax liabilities who pays for them. Let’s start from the beginning In the event of death of the assessee  the income tax returns on behalf of the dead person has to be filed. In case of a deceased person, the  the legal heir of the deceased person has to file income tax return for the financial year. He has to register as a Legal Heir to do e-Filing on behalf of the deceased.There is no change in Income tax computation and procedure of filling income tax return. This article explains in detail.

Filing of income tax return after death

Even when a person dies, the assessment of his income is to be done upto the time of his death.This is for an individual and is covered under Section 159 of the income tax act. The legal representative of the deceased has to file the income tax return for the income on which the deceased.  The income earned in the year of death is classified in two categories:

  • Income earned from April 1 till the date of death
  • Income earned thereafter till the end of the financial year.

Usually, spouse or close relative of the deceased takes charge as the legal representative. Else, in case of will of the taxpayer who has passed away, the executor is held responsible.  The legal representatives will have to file returns in the deceased’s name for income earned till the date of death. Subsequent earnings are to be taxed in the hands of the legal representative/executor of the deceased’s estate. So if an individual died on 12 June 2014, his legal representative will have to file on his behalf for the financial year 2013-14 as also for the income for three months of 2014-15 in the next assessment year.  The only difference in filing return one self and by legal assessee is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Process of tax calculation, filing returns remains the same. How to get the information, making senses of information to file the returns like Bank accounts statements, Form 16, well that’s a battle or war that you would have to fight.

Example : Kirit inherits a fixed deposit (FD) of Rs. 10,00,000. Shruti inherits an apartment from her father which was rented out. Interest received from the FD and rent received from the apartment before the death would be taxed as income of the deceased. The interest received from the FD and rent received from the apartment after the death would be taxed in the hands of  Kirit and Shruti respectively. Our article On Inheriting,Tax of Property,Mutual Funds,Shares,FD etc explains about inheritance in detail.

Legal representative has to register at the income tax website as Legal Heir with a list of documents (explained here). If the request is approved then he can file returns on behalf of the dead person.On the return, the name should be mentioned as late (name of deceased) through legal heir (name of person filing)  ex LATE Mr / Mrs. _________ through legal heir Mr / Mrs. _________

If the karta of an Hindu Undivided Family (HUF) dies then as HUF is not a living entity so death of the Karta  does not lead to any change in taxation. The HUF continues to be taxed as before and the senior most male co-parcener in the HUF becomes the Karta.

Who is Legal Heirs or Legal Representatives, Executor

Who is Legal Representatives or Legal Heir? Usually, spouse or close relative of the deceased takes charge as the legal representative. Else, in case of will of the taxpayer who has passed away, the executor is held responsible

If there are many heirs, one of the heirs cannot assume himself as legal heir unless declared so legally to file the return on behalf of the dead person. Suppose, if other descendants do not have any objection right then, but later at some point of time someone raises dispute about heir being not authorised? What would be heir position to save from the case of cheating or fraud with the other legal heirs as well as the IT department of the Government? Hence one needs to obtain a Legal Certificate . Income Tax Authority expects Legal Heir certificate or Affidavit in presence of a Notary Public. Following documents are accepted as Legal Heir certificate.

  • 1. The legal heir certificate issued by court of law
  • 2. The legal heir certificate issued by the Local revenue authorities.
  • 3. The certificate of surviving family members issued by the local revenue authorities
  • 4. The registered will
  • 5. The Family pension certificate issued by the State/Central government.

In practical terms , the heir himself if there is only one or if there is more than one heir , should first make an agreement among different heirs so that others assign one person as legal representative for the purpose of income tax matter. That person can sign the return of the deceased person and can appear before the assessing officer in case of any proceedings.

Executor and Income Tax

Typically, an executor is appointed through a will made by the deceased, and he administers the estate as per instructions in the will. If the deceased hasn’t left a will, the estate is administered in accordance with the law of succession. The executor controls the estate of the deceased till the administration of the estate is complete, that is, till all the assets are distributed to the beneficiaries.

Tax treatment of estate income. The estate could generate income before all the assets are distributed. While such income accrues to the estate, it is taxed in the hands of the executor from the time of the owner’s death till all the assets are distributed. The executor pays the tax out of the income earned from the estate. However, if some of the income is being distributed to legal heirs before distribution of assets, such income is taxed in the hands of the legal heirs. For tax purposes, the residential status of the executor is to be derived from the status of the deceased in the year of death. For instance, the executor would be a resident if the deceased was a resident in the year of death, and a non-resident if the deceased was a non-resident in the year of death. Thus, if the deceased was a non-resident, only the income earned in India would be liable to tax in the country

Status of the executor. If there is only one executor for the deceased’s estate, his status would be that of an individual, but if there is more than one executor, their status would be that of an Association of Persons(AOP). In both cases, however, the returns filed would be assessed as in the case of an individual. Thus, income from the estate would be taxed at the normal rates of tax applicable to individuals. The executor would be eligible for rebates and deductions on any investments from the income of the estate, but he would not get the extra rebate available to a senior citizen or woman assessee below the age of 65 if the deceased was a senior citizen or a woman. In the case of losses, since the executor is assessed income of the estate of the deceased. He can carry forward any losses incurred by the deceased prior to death, and this can be adjusted against the income arising from the estate while he is in control of it. Any outstanding tax liability payable by the deceased can be enforced against the deceased’s estate, and the executor is bound to make good the payment. However, the executor will not be liable or subject to any prosecution proceedings launched against the deceased before his death. Further, an executor administers the estate as a representative of the deceased, and not on behalf of the beneficiaries. Therefore, even if the deceased made separate wills appointing different executors for different properties, a single return would have to be filed for the entire estate, and the tax department would conduct a single assessment

Tax Liability of Dead Person – Who’s responsible?

Legal Heir is not responsible to pay income tax of the deceased from his own money. If there are tax liabilities of the dead person,legal representative  is  liable to pay income tax on behalf of the deceased. Advance tax payments and self assessment tax payments are also to be done by the legal representative. The tax is to be recovered from the estate of the deceased. Legal representatives would be personally liable to the extent of the assets to which they come into possession. Thus, all the legal heirs are liable upto the extent of the assets that they inherit.

Example: Shyam and Shankar  are brothers. Shyam receives Rs. 50,000 and Shankar Rs. 1,50,000  after the death of their father. Tax liability of the father is Rs. 75,000, so Shyam can not be liable to pay more than Rs. 50,000 (the upper limit), as that is what he inherited from his father

How to Register as a Legal Heir at incomeTax efiling Website

From IncomeTax Website https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html

User should register as a Legal Heir to do e-Filing on behalf of the deceased. Deceased person’s PAN and Legal Heir’s PAN should be registered in the e-Filing portal. If Deceased person PAN is not registered in the portal then the Legal Heir can register on behalf of the deceased person.Following are the steps for registration of Legal Heir:

  • Step 1 − LOGIN to e-Filing application and go to ‘My Account’ –> Register as Legal Heir.
  • Step 2 − Provide the necessary details and attach a zip file containing the below documents. Note: The zip file attachment should not exceed 1Mb.
    • 1. Copy of the Death Certificate
    • 2. Copy of PAN card of the deceased
    • 3. Self-attested PAN card copy and
    • 4. Legal Heir certificate** or Affidavit in presence of a Notary Public. ** Following documents will be accepted as Legal Heir certificate.
      • 1. The legal heir certificate issued by court of law
      • 2. The legal heir certificate issued by the Local revenue authorities.
      • 3. The certificate of surviving family members issued by the local revenue authorities
      • 4. The registered will
      • 5. The Family pension certificate issued by the State/Central government.
  • Step 3  Click Submit.
  • Step 4  The request will be sent to the e-Filing Administrator.
  • Step 5  The e-Filing Administrator will review/verify the request and approve/ not approve as applicable. e-Filing Administrator may approve as Temporary Legal Heir or Permanent Legal Heir, based on the documents uploaded. An e-mail is sent to the registered e-mail ID.

On e-Filing administrator’s approval, the ITR Form of the deceased person can be uploaded via LegalHeir login.The Legal Heir should add his/her PAN in the verification part of the ITR Form, validate and generate the xml of the return and upload the return of the deceased using the Legal Heir login.

A person is treated as a Temporary Legal Heir when the person fails to submit any one of the five Legal Heir certificates mentioned in Step 2. The Temporary Legal Heir is allowed only to upload ITR/Forms and will not be able to access all other services, which includes add CA to submit audit forms (other than ITR) on behalf of the deceased.

A person is treated as a Permanent Legal Heir whwhen the person submits any one of the five Legal Heir certificates mentioned in Step 2. The Permanent Legal Heir may file Income Tax Returns/Forms,

  • View Status of Income Tax Return/Forms, ITR-V Acknowledgment and other filing status of e-Filed
  • Returns/Forms in respect of the deceased.
  • One can also view the status of the request under My Request List menu, post Login.

What to do in case of Refund of deceased person

Where there is any refund in case of a deceased assessee, the refund can be received by the legal heir just like he/she can sign the Return of Income. Refund cheque can be encased  in any bank account where the deceased holder was a joint account holder with any other person. If there is no such joint account, the nominee appointed by the deceased assessee can operate the account. Where there is no nominee, the heirs of the deceased person are required to submit various documents as evidence such as Death Certificate, Succession Certificate from court, etc. as per the procedure of different banks. From FY 2014-14(AY 2014-15) i.e returns filed by 31 Jul 2014 Refund will be credited directly into the account , no cheque will be issued.

 Related Articles:

It is said that the only sure things are death and taxes, but even death doesn’t save a person from having to pay taxes or filing his income tax return. Legal representative have to file the Income tax return of deceased. Have you had to file the Income tax return of your loved one? How difficult was the process? What problems you faced? Was it difficult to get the Legal Heir certificate?

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110 Responses to Income Tax Return of Deceased

  1. R VENKATARAMAN says:

    father is in Chennai. the son is in USA. the father himself files income tax return online every year without fail. There is no outstanding demand notice against father by the Income tax department. After his father’s death how can son know how much income accrued during the year of death. what should he do? Is there a provision by which the income tax department declares some pro rota income from 1st April to the date of father’s death so that the son can pay it.

  2. AJ says:

    HI

    I want to know if it is compulsory to register someone who passed away before 1 March 2016 for income tax? And if so, where can I get that article?

  3. Parikshit Nakle says:

    Hello sir,
    I want to know that is there any such rule that if a person dies and he is filing i t return every year then govt gives his/her family an amount equal to 10 times of his average last three years income. For ex. a person dies and his last three years income was 4,5 and 6 lakhs then his last three years avg income will be 5 lakhs. So govt will give his family 10x5lakhs = 50lakhs.
    Is this true? If yes, can u give some reference? If not, sorry to disturb you.

    • bemoneyaware says:

      Sir we are not aware of such rule.
      Where did you get the information from?
      Just think logically why would govt. pay when someone dies?

    • RAJENDRA SINGH NEGI says:

      Hello sir,
      I want to know that is there any such rule that if a person dies and he is filing i t return every year then govt gives his/her family an amount equal to 10 times of his average last three years income. For ex. a person dies and his last three years income was 4,5 and 6 lakhs then his last three years avg income will be 5 lakhs. So govt will give his family 10x5lakhs = 50lakhs.
      Is this true? If yes, can u give some reference? If not, sorry to disturb you.

  4. Ashish says:

    Hi,

    How to generate a acknowledgement after filing of return of deceased person by a legal heir?

    • S K Gupta says:

      If u are granted the status of permanent legal heir you can submit the ITR form and you can generate the ITR V as done in normal case.

  5. Ashwani Pandey says:

    My father expired in the year 2008 may. After his death i made the equity shares which were on my fathers name which he purchased in year 1993 share to my mothers name and sold those shares in the same year. The original amount for which those shares were bought was around 10000rs and for which they were sold was around 90000rs. And through that money i invested that amount in some other shares and i had to bear the loss and finally i moved out the rest of the money which was around 25000 rs. So is my mother liable to pay any taxes ?

  6. ankit says:

    Sir,

    1) Is it necessary in case of Legal heir of deceased assessee to file ITR by DIGITAL SIGNATURE?

    2) If I do affidavit for legal heir in presence of notary public, What is amont of stamp on which affidavit done? Whether any specific drafting requirements??

    3) By affidavits as a legal heir I get temporary rights, so whether I can generate acknowledgement to send banglore???

    Thank you.

  7. Gaurav says:

    My father passed away in Jan 2016. My mother registered his PAN in her IT site and became his Temporary legal heir. She will file his return till the date of death from her ID.
    Now for the period after his death how does one get a PAN for his estate? She will be the administrator. Two PAN applications have been submitted and both rejected.
    Basically it is an Individual PAN application. Name used is EXECUTOR ESTATE my fathers name. Date of birth entered is the date of Death. Rest details are of my mother. Also her details are put for Representative assessee. We have submitted death certificate, address proofs etc.

    What are we doing wrong? Or can my mother include Estate income in her tax returns for period after his death? She will become the Administrator.
    Tax and PAN helplines have no answer.

  8. Dinesh Mathur says:

    My father was the sole proprietor of a trading firm (mainly doing the trading of spare parts). Suddenly due to heart attack he died. Now we are three legal heirs and I want to continue running the business as a proprietor and my two other legal heirs have no objection to the same. What should be the procedure.

  9. Rajesh says:

    This is a complicate case. My Father worked in the state Electricity Board and was wrongly suspended and then dismissed from work for a period of 3 years. Then we fought the case and won. Court ordered to reinstate him into the service and pay the salary for the 3 years of dismissal and 2 years of suspension.

    But the electricity board did not pay the pending salary until 2012 (4 years after court judgement) and kept citing missing files etc. as reason. Actual reason is they wanted bribe. My Father did not budge but unfortunately the stress got to him and he passed away due to Stroke in 2012. Finally my mother got all the pending money in 2014 amounting to around 30 Lakhs (Salary for 3+2=5 Years).

    Now, regarding the taxation for this amount, some auditors say that since my Father has passed away before he got the arrears salary, there is no need to pay any tax. Others say that the tax will be calculated 30% of the full amount paid to my mother. But this is the arrears salary which would have fallen only into the 10% bracket if it was paid in those years. Now the amount is paid in full, so it is not fair to pay 30%.

    Could you please suggest how to proceed now ? Thanks in advance.

    • bemoneyaware says:

      Income tax like any other thing is life is based on interpretation and different people have different one.
      Our opinion is
      Liability to tax arises only in the year in which the arrears are sanctioned/received. On the date on which the amount had become due, the assessee your father was not alive. These arreas cannot be treated as arising out of employment, because there is no employer-employee relationship between the employer and the deceased or as between the employer and the mother on the date of accrual. It can have only the character of a capital receipt in her hands, as it had become due after his death. In other words, since the amount had accrued after the lifetime of the employee, it is not assessable as income of the estate of the deceased.
      As your mother got the amount in 2014, she has to file ITR to keep track of the amount. Was any TDS deducted ?

      • Rajesh says:

        No, there was no TDS deducted.

        So, do you mean to say that we have to consider this as my Mother’s income for that particular year and pay the 30% tax on it or ?

  10. R K says:

    I am working in def services . My mother had expired on 27 Nov 2014. She was getting monthly rent in the joint account with me . Her individual over all income was less than 3 lac per annum. The last return filed for refund for FY 2013 – 14. No return filled thereafter and no refund of TDS claimed since FY 2013-14. Please advise how to claim TDS for FY 2014- 15 & 2015-16.

  11. S K Gupta says:

    Submitted the ITR in respect of my deceased father as Temp Legal Heir. Now I have no proof of submission and other things. The request for upgadation to Pmt Legal heir is being rejected as it is very difficult to get the certificates mentioned therin. How to resolve the issue?

    Local REvenue Authorities mens who? And how they will issue the legal heir certificate. Court Order is difficult to get. I had submitted the affidavit sworn before the 1st class judicail magistrate of the District Court whcih is not accepted by them.

    More over it is also very difficult to zip the file within 1 MB .

    Please suggest

    Regards,

    • S K Gupta says:

      Issue already resolved..

      • bemoneyaware says:

        Glad to know it was resolved.
        Would you be kind enough to explain what you did?

        • S K Gupta says:

          The status of temporary legal heir was upgraded to permanent one after submission of Court documents affirmed before the 1st class judicial magistrate stating that I am the legal heir. Thereafter the IT return was submitted and processed in the usual manner .

  12. Mohammed Azharuddin says:

    Dear sir,
    My Name is Mohammed Azharuddin and I need legal opinion on continuation of a proprietary firm..
    As I was working with my father for last 8years and he was the proprietor of the firm
    M/s Gulbarga local Transport Handling & transportation contractor, Gulbarga.

    Last year on 14th march 2015 my father expired due to heart failure. As a authorized person
    Two contracts were allowed to continue
    1. Central warehousing corporation. Bangalore
    2. Rahstriya Chemicals & fertilizers, Bangalore(work successfully Completed in July 2015)
    However Central warehouse corporation has terminated the contract on 05th August 2015 due to legal opinion from their head office Delhi
    That as it was a proprietary firm the authorized person cannot continue the work so terminated.

    Now my question is can I continue as new proprietor of the above firm. Because I want to apply for future works using my fathers
    ITR, BALANCE SHEET, PROFIT&LOSS statement, Experience (Work Completion Certificates) Etc, or should make a new firm which I think it’s impossible at this stage
    As I was not having required work experience on paper or else should I make this Firm as registered partnership firm.

    Kindly help in this regard & oblige.

    Thanking You

    Regards

    Mohammed Azharuddin
    S/o Mohammed Iftekaruddin
    Gulbarga
    Mob: 09741973414

  13. Sunaina says:

    My mother passed away end of Jan 2016. Her wish was to create a Trust of her property that includes her house which fetches rent from a Bank. The Bank, upon hearing of her demise has stopped paying the rent, saying that the TDS can’t be paid against her PAN. As the Trust will take a while to come into being, will the Bank not pay the rent till then?

  14. R S KANNAN says:

    My brother in law expired in January 2014 and I filed his return wherein i didnt find any provision to declare his death. the return was signed by his wife (my sister). I have now been getting reminders from the IT department for filing the return. How and where do I inform/declare about his death? Can anyone please help me?

    KANNANA R S

  15. Murty BSN says:

    My Father (82 Y) is State Govt retired employee and got the pension from Treasury,Expired on 20th Jan 2015. he regularly filed IT Return upto FY 2013-14 as nil return. After expired we are not filed the return. His January and February pension and death relief amount received my mother along with Family pension. Please advise us to file returns both of my parents at the earliest.

  16. Rajesh Kumar Sharma says:

    My client’s father died in Oct’2014. My client registered himself as legal heir in Income tax portal. Now question is that there is a refund of Rs. 105000/- of deceased ITR in AY 2015-16 but there is no active bank account of deceased. Can my client get refund directly in his account or cheque in his name. Plzzzz urgent

    • bemoneyaware says:

      Which account number did you give while filing ITR?
      The legal representative can receive the refund while processing the return of income of the deceased. Usually, the refund is directly credited to the bank account provided at the time of filing the return. The account may be of the legal representative or the joint account held by the legal representative and the deceased person jointly or any such other arrangement agreed upon by the legal representatives.

    • bemoneyaware says:

      If the refund has been issued then you can apply for reissue Logon on to http://www.incometaxindiaefiling.gov.in with your user ID and Password.
      2. Go to MY Account Refund Reissue Request

      You can also call CPC for Refund /Refund re-issue Notification & Processing at 1800 425 2229 toll free number.
      Do keep us updated.

  17. mona says:

    Hi,
    My father died on feb 2016. We have to submit advance tax detail by 15-03-2015. please tell the process in absence of legal heir certificate or will. also other than salary he used to receive income through interest on savings bank ac and Fd. Please help.

    • bemoneyaware says:

      Sad to hear about your father. Our condolences with the family.
      Legal heirs have the responsibility to pay any demands of the deceased.The tax challan is filled with PAN only then it will display the name of the PAN holder.
      Pay online with the PAN of the deceased. Get the legal heir registered with IT Department as per the procedure given in the site incometaxindia.gov.in. For payment of taxes there is no problem.
      Our article Paying Income Tax Online, epayment: Challan 280 talks about how to pay eChallan.
      Please be careful of Assessment Year : AY 2016-16
      Tax applicable : For individual Select 0021 : INCOME-TAX (OTHER THAN COMPANIES)
      Type of Payment : 100 for Advance Tax

  18. My father is a government teacher and he was died on January2016, but he supposed to pay the tax in March 2016. Please tell is he eligible for tax, in that case how should I know the tax amount.

  19. Sachin says:

    My mother expired in Oct 2012 and I filed Income Tax return of that financial year 2012-13 as usual without doing Legal Heir procedure. It was NIL return (no tax due or refund)as I was not aware of this procedure until I received an email from IT to file IT return of her for last year 2014-15 and then I read your very informative article today. Can you please advise if I need to correct previously filed return of 2012-13 and if yes what should I do to correct it?

  20. Imran Tamboli says:

    First of all very nice and important article to know.

    Can any one let me know how to get PAN of deceased person.

  21. Abhijit says:

    My Father-in-law(FIL) died in Feb 2015.We filed his return in Jun 2015. Now last month (Jan 2016) he has received a big lump sum amount as arrear for his service in Indian Army. The bank account is in now in his surviving wife’s (MIL) name. Can we still file return for this amount in my FIL’s name ?

    • bemoneyaware says:

      Good to know that you are taking interest in your inlaws finances.
      An amount earned by a person during his lifetime is taxable in the hands of the legal representative under Sec. 159 of the Act. In your MIL case, the MIL is a legal representative, who is obliged to pay tax, because she is “deemed to be an assessee” under Sec. 159(3) of the Act, in respect of the income assessable in the hands of her husband in like manner and to the same extent as the deceased. Normally, this provision applies to a case, where the amount was due to deceased during his life time but received after his life and not to amount, to which he could not have laid a claim during his life time.
      The income in the your MILs case has accrued after death on sanction of arrears after refixation of pay after his life time, so that liability to tax arises only in the year in which the arrears are sanctioned/received. On the date on which the amount had become due, the assessee was not alive.
      accrual of income is after death, so that it cannot be treated as arising out of employment, because there is no employer-employee relationship between the employer and the deceased or as between the employer and the MIL on the date of accrual. In other words, since the amount had accrued after the lifetime of the employee, it is not assessable as income of the estate of the deceased.
      It is presumed that tax has not been deducted at source from the payment. If it is so deducted, a return may be filed in the name of the person in whose name TDS certificate is issued and file return claiming refund on the ground that the receipt is non-taxable

  22. Imeev says:

    This is my first ttime visit at here and i am truly impressed to read all at one place.

  23. Neha says:

    Mr. sukdev singh died on 14/1/15 and he was receiving pension and FD Interest.The FD interest was continued to be received even after his death i.e. Oct 2015.We want to file IT return for FY14-15,FY 15-16 in order to get refund of TDS
    Kindly guide us on how we can file ITR pretaining to period after his death.

  24. Charmi says:

    My grandfather passed away in Aug 2013, and the bank deducted Tax on his file in 2014-15 even after submitting the death certificate. My father is the only legal heir. How can we apply for a refund? The amount is around 20k, please suggest

    • bemoneyaware says:

      Bank did correct. If interest amount is more than 10,000 bank has to deduct TDS unless form 15H/G has been submitted. The interest amount if any is added to the recipient’s income and will be taxed accordingly.
      You need to file the return on behalf of your grandfather and claim TDS back if his income till Aug 2013 was below the basic exemption limit that year.
      Did you close the FD or let it continue after your grandfather’s death?
      The maturity proceeds are not taxed in the hands of the final recipient as there is no estate duty in our country as per the current tax laws in force.

  25. P.SHANMUGASUNDARAM says:

    One of my client running a Partnership Firm. The firm has correctly filed its Return of Income upto A.Y.2014-15. Husband and wife were partners in this firm. They have two sons both are minors. In an accident in May 2015, both the partners were died. For the financial year 2014-15 respective A.Y.2015-16, the turnover is above 3 crores. Now how the Income tax return for the A.Y.2015-16 should be filed as its a TAX AUDIT CASE and also VAT Form WW Return for the financial year 2014-15 as the Turnover exceed 1 crore..

  26. Nidhi Bajaj says:

    For filing i.tax returns on behalf of deceased,is it necessary to file an affidavit along with other documents.I dont have any legal heir certificate.So in absence of it,affidavit is must or an option?

  27. Lokesh kachhwal says:

    Can i invest under sec 80 on behalf of died person

  28. Abhijit says:

    My father was filing his income tax return through a third party. Hie is 82+. For the A/Y 15-16, I tried to contact the person but of no avail. In the meantime my father had a brain stroke and was hospitalised. Thereafter, I logged into my father’s account did upload his return but could not submit the same since his mobile no was not in sync with his aadhar no. He did not believe in net banking also. His income was Int on FD, RD, Pension, SB Int, MIS of Post Office. He was living in his own house.
    Please help me to file his income tax return for A/Y 15-16.

    • kbhaskaran says:

      you can register your mobile no in your father’s IT a/c,m where you tried to upload.
      download the IT return and take print out. Do not sign in the place where your father has to sign.
      attach the death certificate and succession certificate
      sent it by speed post to the address given in the printed ITR.
      you will get the refund.
      I got it like this.

  29. B. Viswanatha Reddy says:

    B. Varaprasada Reddy died on 21.08.2014 (PAN : AANPB3720H. His return of Income for the Asst.Year 2015-16, corresponding to the period 01.04.2014 to 21.08.2014, has been filed U/s 159 by his wife & legal representative after registering herself as legal heir with her PAN No.
    After his death, the business was continued by the legal heirs, consisting of his wife, son & daughter (with equal shares) for a period of another two months. Now the income earned by the Estate of Late Sri B. Varaprasada Reddy, has to be offered for tax and the Return of income of the Estate of Late Sri B.Varaprasada Reddy has to be filed by the Executor (Senior legal heir & wife) U/s 168. Please clarify the position regarding the following.
    1. Name of the assessee : Estate of Late B. Varaprasada Reddy
    2. Status : Whether A.O.P. OR Individual?
    3. PAN : Whether the PAN of the wife & Legal representative is to be
    stated or the PAN of the deceased assessee?
    4. Threshold Limit : Rs.2,50,000/- as in the case of Individual.
    5. Rate of tax : 10% since the deceased assessee was Individual.

  30. B. VIJAYALAKSHMI says:

    B. VARAPRASADA REDDY, an assessee died on 21.8.2014. His income tan return has been filed till the date of death by the wife & legal representative.

    For the income earned after the date of death i.e. from 22.08.2014 to till 31st March, is to be filed now as ” ESTATE OF LATE SRI B. VARAPRASADA REDDY”.

    What is the status which it has to be filed and do we need take a separate PAN or do we file under the PAN of the deceased late B. Varaprasada Reddy.

    Please clarify & advice accordingly.

    B. VIJAYALAKSHMI.

  31. B. Viswanatha Reddy says:

    B. Varaprasad Reddy died in the middle of the last financial year. He was an LPG distributor. The business was continued by the legal heir for about 2 months after his death by the legal heirs wife and two major childrens as directed by oil company. Later they appointed an adhoc distributor for about 5 months. Two of the legal heir formed a partnership to carry on the distribution in the firms name which was the trade name of the deceased assessee. Please let me know whether only one return has to be filed for the income earned till his date of death as well as for the next two months or two seperate returns for the period

    • bemoneyaware says:

      Only one return has to be filed for the deceased till date of death

      • B. Viswanatha Reddy says:

        Please Let me know, in reference to above query, who has to file the return for the transactions done after the death of assessee prior to reconstitutuin. In which status the return has to be filed by legal representative

  32. AD Singh says:

    My mother(proprietor of a business)passed away on 18th April, 2015 and i filed for her annual return in August 2015 well before the deadline date. Now i have received a notice in her name under section 143(2) stating she or a representative has to attend the office of the Income tax officer. How should this be handled.
    Thanks.

  33. Jayesh Ahuja says:

    My frnd’s dad died last year having salary income on which TDS deducted, his father was disabled person claiming deduction under section 80U. Can my friend claim deduction under section 80U, while filing income tax return of his deceased father?

    • bemoneyaware says:

      Yes he can and should claim the deduction.
      The only difference in filing return one self and by legal assessee is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Process of tax calculation, filing returns remains the same.

  34. Bharati says:

    My sister, an NRI, passed away in July 2014. So I need to file return for 14-15 and 15-16. My question is whether return should be filed by her husband (again NRI) or can I file it?

    Also, the tax site asks for legal heir certificate. But you have written that affidavit before notary is acceptable. Pl. confirm as I don’t have LHC and neither I nor her husband knows who to approach for obtaining it.

    Thanks

  35. VINI SINGHAI RATRA says:

    my father passed away on 17thjuly 2014.He was a state gov pensioner.After his demise the pension from august2014 was transferred to my mother(housewife/60y) as a family pension.The bank deducted TDS from my fathers pension till July 2014.From August the pension pay slips were changed to my mothers name and her PAN was reflected on the same.Now,how should my mother file taxes:
    1) as 2 different tax –one n fathers name and one in her name?
    2) as combined one pension for the whole year in fathers name ,and showing herself as a legal heir?
    what is the correct procedure..?
    an early reply is appreciated.

    • Kirti says:

      Sad to hear about your father demise. Our condolences are with you and your family.
      Your father tax return should be filed by his legal heir which you can also do and should include his pension till 17/Jul/2014.
      If Your mother files her income tax she should include pension , which is family pension, as Income from Other sources. She could claim a deduction of one-third per cent of such pension income or Rs. 15,000, whichever is lower.

  36. MANOJ GUPTA says:

    I have two question. So, Please help me.

    My client’s mother and father expired in the last Financial year (FY 2014-15). My question is :
    (1) Where I should create add as legal heir, whether in my client’s income tax portal or deceased person’s income tax portal.
    (2) In whose PAN, tax should deposited either my client’s PAN or deceased person’s PAN.

    Thanks

    MANOJ GUPTA

  37. NARAYAN says:

    Dear Sir,
    I want to know whether we can file tax return of deceased spouse’s pension
    thro HUF as income is not earned by me.

  38. Deb says:

    Hi,
    My father passed away last week. He was a business man and stopped his business midway in November, 2011. He received a sales tax demand notice of 4 lakhs for the year 2011-12 (Done on basis of some special audit). In the previous year the sales tax was generally in the range of 60-70 thousand. Also last year since he stopped his business the sales tax is supposed to be even lesser. Their were couple of notification from the sales tax and it seems my father ignored it thinking he had stopped the business. Me and other family member were completely unaware of the situation. Any suggestion on what we should do now will be helpful.

    • bemoneyaware says:

      Sad to hear about your father. Our condolences for the family.
      Coming to your question You would have to understand why the notice came, is it valid or not.
      We would recommend Talking to tax lawyer

  39. Ravi Shankar S says:

    My Father died on 19/4/2015 and I want to file his returns. When I visited the income tax website they were asking death, legal heir certificate etc to file his return from legal heir. The problem is these certificates are in my regional language and they are not in English. What should I do?

    Should I translate the content in English and get a Notary public signature?

  40. R K ARYA says:

    My unmarried son passed away on 29-Jun-14 in a tragic accident. He was employed with Cognizant. No ITR was filed for FY 2013-14 (as the due date was upto July 14 and he passed away before that). However, now I (father) wish to file his ITR for FY 13-14 & 14-15. TDS has been deducted from his income in FY 13-14 & 14-15 which requires to be refunded due to his income being below taxable limit. Please advise following:
    1) There is no will, succession certificate or legal heir certificate issued by court.
    2) Can an affidevit signed in presence of Notary will do for “Legal Representative” as acceptable by I.Tax authorities when applied thru efiling as legal heir.What is the format of such affidevit.
    3) I have original death certificate
    4) I receive his monthly pension in my name.
    5) His all bank accounts are now closed.
    Our family now consists of myself, my spouse and one unmarried younger son.
    Please advise suitably.
    Thanks

  41. Chandresh says:

    Hi I have one more query,

    My friends father expired last year somewhere in December. How will they file his return
    1. Is it one return for the whole year or two returns
    2. Does the Income tax website allow to file two returns for the same year
    3. Can they file hard copies of returns instead of e-filing.

  42. Chandresh says:

    Hi,My friend’s mother passed away a few years ago somewhere in 2012. She has e-filed her mother’s return using her mother’s login details and not as a legal heir. She has also received refund in her late mother’s back account. Can she now register on the Income tax website as a legal heir and file the returns henceforth as a legal heir. Will she face any trouble for the returns filed for the previous years.

  43. VINOD BANKERS says:

    sir my grandfather expired on 5-5-2014,aged 88,he has made a will for the assest,i am legal heir,he had unsecured loans of two lakhs which was disclosed in last years returns,i have to pay the said amount,
    the point is how will i pay now by cash or by cheque from my account

    reply

  44. vinod kumar bansal says:

    Respected sir,
    my father died on 31/03/2015. he was 83 years old.
    his income was
    (1) from govt. pension (retired govt. employ)
    (2) FROM intrest income (bank fd )
    he deposite in PPF A/C , SO there is no tax able income .
    Sir I want to know will I have to file income tax return or not as there is no tax due towards my father.

    • Kirti says:

      Sad to hear about your father. May God give you strength to your family.
      Was your father filing Income Tax return?

      • vinod kumar bansal says:

        Yes , He files income tax return every year.
        as he was supper senior citizen and deposite in
        ppf a/c every year ,so no income tax due towards him.
        this year , after calculation there is no tax due.
        I want to know, will I have to file his I.T. return
        or not.
        is it necessary to inform the I.T. Dept.
        about the death of my father?
        thanking you
        vinod k. bansal

        • Kirti says:

          Vinod Sorry to hear about your loss. Please accept our heartfelt condolences on the loss of your father.
          Sir it’s Compulsory to file the tax return of deceased assessee. It’s like closing the file, informing Income Tax Department.
          Filing of Income tax return cannot be ignored as it is an ongoing process. Filing of Income Tax Return and liability to pay taxes on income of deceased is same as alive person. The only difference in two is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Deceased person is entitled to all the deductions and exemptions for the entire year, but however tax is levied on the income being earned till his/her death. The return of the deceased person would include income till the date of death of the assessee, hereafter the income would be taxable in the hands of the Legal Heir and included in his return of income.

  45. really superb.thanks to sharing this.

  46. really superb.thanks to sharing this.

  47. LS says:

    My father expired in Nov 2012 and was bed ridden for couple of years hence we did not file for tax returns as that never struck us then, he had some FDs for which my mother is the Legal Heir now what needs to be done. Does my mother has to file returns for him & herself and since which year it needs to be done. I also read one of your article which said that delayed returns can be filed only for 2 years, please assist us in this regard.

  48. LS says:

    My father expired in Nov 2012 and was bed ridden for couple of years hence we did not file for tax returns as that never struck us then, he had some FDs for which my mother is the Legal Heir now what needs to be done. Does my mother has to file returns for him & herself and since which year it needs to be done. I also read one of your article which said that delayed returns can be filed only for 2 years, please assist us in this regard.

  49. ANKIT says:

    My grandmother expired on 19.2.2012. There is some interest income in her name for which i need to file return of income of her Estate. She was 96 years old when she expired. Kindly inform whether her estate return gets the benefit of super senior citizen ( Rs. 500000.00) or senior citizen or as individual. My uncle is her sole legal representative and he is 59years old . I am confused as to which exemption limit i should take. Last year i paid taxes with rs. 200000.00 exemption limit and the income tax department sent me refund after considering rs. 500000.00 exemption limit.

    • Kirti says:

      Hello Ankit
      Are you filing returns for your grandmother as her an individual ?
      If individual she falls in senior citizen(60 years+) or super citizen (80 years+) category.
      The income up to the date of death would be taxable in the hands of the deceased. The tax would, however, be leviable and recoverable from the legal representatives of the deceased in a like manner and to the same extent as the deceased.

      The incomes that accrue after the date of death would be taxable in the hands of the legal heirs in their individual capacity. If, however, the legal heirs cannot be determined with certainty, the income shall be chargeable in the hands of the executor/executors.

      The legal heirs are not liable for any tax or other liability of the deceased if it is more then the value of assets.

  50. ANKIT says:

    My grandmother expired on 19.2.2012. There is some interest income in her name for which i need to file return of income of her Estate. She was 96 years old when she expired. Kindly inform whether her estate return gets the benefit of super senior citizen ( Rs. 500000.00) or senior citizen or as individual. My uncle is her sole legal representative and he is 59years old . I am confused as to which exemption limit i should take. Last year i paid taxes with rs. 200000.00 exemption limit and the income tax department sent me refund after considering rs. 500000.00 exemption limit.

    • Kirti says:

      Hello Ankit
      Are you filing returns for your grandmother as her an individual ?
      If individual she falls in senior citizen(60 years+) or super citizen (80 years+) category.
      The income up to the date of death would be taxable in the hands of the deceased. The tax would, however, be leviable and recoverable from the legal representatives of the deceased in a like manner and to the same extent as the deceased.

      The incomes that accrue after the date of death would be taxable in the hands of the legal heirs in their individual capacity. If, however, the legal heirs cannot be determined with certainty, the income shall be chargeable in the hands of the executor/executors.

      The legal heirs are not liable for any tax or other liability of the deceased if it is more then the value of assets.

  51. Pratik Kamdar says:

    Hi, need your help.

    My great grand dad expired in 1980 something. He had a share of investment in a property and he had two sons. The names of his two sons was not included in the property after his death. In 2007, my great grand dad’s share in this property was sold and a tax return in the name of estate of great grand dad was filed. The tax officer of my grand dad is now saying that deceased’s return cannot be filed so much time after his death and he has initiated assessment in my grand dad’s PAN. Can you tell me if the argument of the tax officer is valid?

    • Kirti says:

      Pratik yes the argument of tax officer is valid. Filing return in 2007 for 1980 is not possible. But can the tax officer initiate assessment for dead man’s estate, better contact a tax lawyer or CA.
      You can file income tax returns of only last two years. Quoting from our article Filing Income Tax Returns after deadline
      Last date for filing returns for an individual is usually 31 Jul of the assessment year. So last date for filing returns for FY 2013-14 which is AY 2014-15 was 31st Jul 2014.
      If one missed the last date for filing returns, one can still file returns till 31st Mar of the Assessment year . So one can still file for returns for FY 2013-14 which is AY 2014-15 till 31st Mar 2015.
      If one misses the 31 March AY deadline as well, they can still file their return by 31 March of the next assessment year. However, this will be treated as a belated return. i,e for FY 2013-14 which is AY 2014-15 one can still file Belated return from 1 Apr-2015 to 31-Mar-2016.

      Capital gain or loss would have to paid by the person or persons who inherited the property. Our article On Inheriting,Tax of Property,Mutual Funds,Shares,FD etc explains the process in detail.

  52. Pratik Kamdar says:

    Hi, need your help.

    My great grand dad expired in 1980 something. He had a share of investment in a property and he had two sons. The names of his two sons was not included in the property after his death. In 2007, my great grand dad’s share in this property was sold and a tax return in the name of estate of great grand dad was filed. The tax officer of my grand dad is now saying that deceased’s return cannot be filed so much time after his death and he has initiated assessment in my grand dad’s PAN. Can you tell me if the argument of the tax officer is valid?

    • Kirti says:

      Pratik yes the argument of tax officer is valid. Filing return in 2007 for 1980 is not possible. But can the tax officer initiate assessment for dead man’s estate, better contact a tax lawyer or CA.
      You can file income tax returns of only last two years. Quoting from our article Filing Income Tax Returns after deadline
      Last date for filing returns for an individual is usually 31 Jul of the assessment year. So last date for filing returns for FY 2013-14 which is AY 2014-15 was 31st Jul 2014.
      If one missed the last date for filing returns, one can still file returns till 31st Mar of the Assessment year . So one can still file for returns for FY 2013-14 which is AY 2014-15 till 31st Mar 2015.
      If one misses the 31 March AY deadline as well, they can still file their return by 31 March of the next assessment year. However, this will be treated as a belated return. i,e for FY 2013-14 which is AY 2014-15 one can still file Belated return from 1 Apr-2015 to 31-Mar-2016.

      Capital gain or loss would have to paid by the person or persons who inherited the property. Our article On Inheriting,Tax of Property,Mutual Funds,Shares,FD etc explains the process in detail.

  53. Cyrus says:

    My aunty expired in on 19th March 2013. She was 86 years old at the time of death. She had no issues. I and my two sisters are the only legal heirs. There is no will made.

    There was a buy back offer of shares from a limited company in February, 2014. Besides my aunty, I was the only joint shareholder of this company.
    I accepted the buy back offer by submitting death certificate of my aunty and money received from the company was deposited by me in my aunty’s bank savings account, where I am the joint account holder.

    Please advice me on following:
    1) Can I file return in her name as a legal representative, showing long term capital gain on this buy back of shares?

    2)If I can file return in her name, what would be the threshold limit of income tax applicable, since she was a senior citizen.

    3) If I cannot file in her name and since I was the joint holder with her, does this long term capital gain tax becomes payable by me in my return of income? and what will be cost of acquisition of shares to be taken?

    Please advice and also let me know if the other alternatives if any missed by me.

    Thanks and awaiting your reply.

    • Kirti says:

      Yes you should be able to file her return as a legal representative.
      As you filing on her behalf and she was senior citizen then she gets all the advantages of the senior citizen rather super senior citizen (who are above 80 years old)

      Which returns are you planning to file
      – For FY 2013-14 (AY 2014-15) for which deadline was 31 Jul or for FY 2012-13(AY 2013-14)

      From what I can make out the buyback happened after her death and as you are her legal heir the capital gain is in your name . Could you cross check this with a CA.
      I will also try to find out.

      I am not sure about capital gains on buyback but from moneycontrol Find out: Different tax implications to share buyback
      When this direct buyback route is taken, then the investor does not get the benefit of the zero rate of tax on long term capital gains. The conditions related to the application of these rates are not fulfilled.

      The investor does not transact on the stock exchange and there is no securities transaction tax paid. So this will not allow for the application of the zero tax rate.

      The tax would be 20 percent with the benefit of indexation or 10 percent without the benefit of indexation.

  54. Cyrus says:

    My aunty expired in on 19th March 2013. She was 86 years old at the time of death. She had no issues. I and my two sisters are the only legal heirs. There is no will made.

    There was a buy back offer of shares from a limited company in February, 2014. Besides my aunty, I was the only joint shareholder of this company.
    I accepted the buy back offer by submitting death certificate of my aunty and money received from the company was deposited by me in my aunty’s bank savings account, where I am the joint account holder.

    Please advice me on following:
    1) Can I file return in her name as a legal representative, showing long term capital gain on this buy back of shares?

    2)If I can file return in her name, what would be the threshold limit of income tax applicable, since she was a senior citizen.

    3) If I cannot file in her name and since I was the joint holder with her, does this long term capital gain tax becomes payable by me in my return of income? and what will be cost of acquisition of shares to be taken?

    Please advice and also let me know if the other alternatives if any missed by me.

    Thanks and awaiting your reply.

    • Kirti says:

      Yes you should be able to file her return as a legal representative.
      As you filing on her behalf and she was senior citizen then she gets all the advantages of the senior citizen rather super senior citizen (who are above 80 years old)

      Which returns are you planning to file
      – For FY 2013-14 (AY 2014-15) for which deadline was 31 Jul or for FY 2012-13(AY 2013-14)

      From what I can make out the buyback happened after her death and as you are her legal heir the capital gain is in your name . Could you cross check this with a CA.
      I will also try to find out.

      I am not sure about capital gains on buyback but from moneycontrol Find out: Different tax implications to share buyback
      When this direct buyback route is taken, then the investor does not get the benefit of the zero rate of tax on long term capital gains. The conditions related to the application of these rates are not fulfilled.

      The investor does not transact on the stock exchange and there is no securities transaction tax paid. So this will not allow for the application of the zero tax rate.

      The tax would be 20 percent with the benefit of indexation or 10 percent without the benefit of indexation.

  55. RANA UDAY says:

    Thank you Mr Kirti for the information. It was very helpful. Can you throw further light on – how to go ahead for filing Income tax return of deceased after date of death and in subsequent financial year?
    The ITR from date of death to 31st march of the concerned FY and the subsequent financial year, is to be filed as “Estate of …deceased” by Executor/executors (can be as individual or AOP)
    I am unable to find the proceedural aspects required. Do we need to take a seperate PAN or do we file under PAN of deceased?
    I am facing this typical case and need some views/suggestions. Thank you

  56. RANA UDAY says:

    Thank you Mr Kirti for the information. It was very helpful. Can you throw further light on – how to go ahead for filing Income tax return of deceased after date of death and in subsequent financial year?
    The ITR from date of death to 31st march of the concerned FY and the subsequent financial year, is to be filed as “Estate of …deceased” by Executor/executors (can be as individual or AOP)
    I am unable to find the proceedural aspects required. Do we need to take a seperate PAN or do we file under PAN of deceased?
    I am facing this typical case and need some views/suggestions. Thank you

    • Kirti says:

      A very good question RANA. From what I know
      You need to login in incometax efiling webiste using your login and Register as a Legal Heir. Then the process is as described in article. In brief are as follows.
      Please let us know if process mentioned is correct or not. We’ll really appreciate it.
      Log on to http://www.incometaxindiaefiling.gov.in and log in with your registered id (create one if you do not have one). On the main screen, on the top menu bar choose My Account, then from the dropdown menu click on Register as Legal Heir.
      Now fill in mandatory details such as PAN, date of birth and surname of the deceased.
      Scan and attach zip folder, containing the 4 documents mentioned above, with size not exceeding 1 MB.
      On submitting request to the administrator it will be approved (or rejected) after reviewing. A confirmation mail will be sent to your registered email id. Once you get approval you can upload ITR form of the deceased through your login id. You can view status of your request in the My Request List menu on the top bar.
      – See more at: http://www.knowledge.fintotal.com/Procedure-How-to-Register-as-Legal-Heir-for-Filing-Tax-Return-for-Deceased/6503#sthash.vCjsZmdv.dpuf

      • RANA UDAY says:

        Thanks for your prompt reply..However, i am interested in knowing the process AFTER DATE DEATH to 31st March.
        Let me know if you are aware about this period.
        RANA

        • Kirti says:

          What are you looking for RANA?
          Mostly it means getting death certificate, finding out what the deceased person liabilities and assets are, whether the deceased has left a will, who are the heirs(based on religion),whom to inform – whether life insurance needs to be collected, whether the family is eligible for pension and WHO will do the running around.
          We have some articles on paperwork
          On Inheriting,Tax of Property,Mutual Funds,Shares,FD
          Bank Account,Term Deposit,Locker:Paperwork Required For Claim
          Claiming Deceased’s Mutual Fund Units
          Succession Certificate,Letter of Administration,Probate of Will

  57. Jagdish J. says:

    Article is exceelant. If you had given Assessment Order od dec eased itould be helpful to understand more. Thanks

    • Kirti says:

      That’s a great suggestion. Thankfully I personally didn’t have to file such return. My reader needed information on the topic, hence I wrote about it.
      Shall add relevant pictures when I get them

  58. Jagdish J. says:

    Article is exceelant. If you had given Assessment Order od dec eased itould be helpful to understand more. Thanks

    • Kirti says:

      That’s a great suggestion. Thankfully I personally didn’t have to file such return. My reader needed information on the topic, hence I wrote about it.
      Shall add relevant pictures when I get them

  59. Athenas Take says:

    Packed with information and I must say that I didn’t know 99% of it. Thank-you for sharing and enlightening.

  60. Athenas Take says:

    Packed with information and I must say that I didn’t know 99% of it. Thank-you for sharing and enlightening.

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