A Step-by-Step Guide to Filing Income Tax Returns for the Deceased

When a loved one passes away, their legal heir or representative takes on the responsibility of filing their income tax return for the income earned until their death. While this process may seem overwhelming, it can be managed by following the right steps and understanding the necessary information.

Understanding Legal Heirs
A legal heir is someone who represents the deceased's assets. They can be identified through various documents, such as:

Legal Heir Certificate
The deceased's registered Will
Family Pension Certificate
Surviving Family Member Certificate
How to Register as a Legal Heir
To register as a legal heir on the income tax website, follow these steps:

Log in to the income tax e-filing portal using your ID and password.
Navigate to 'Authorized Partners' > 'Register as Representative' and select 'Let's Get Started.'
Select 'Create New Request' and fill in the required details.
Attach the necessary documents and submit the request.
Required Documents for Filing ITR
To file the income tax return, you will need the following documents:

The deceased's copyright
The deceased's PAN Card
Your self-attested PAN Card
Legal Heir Certificate
Any order issued in the deceased's name, if applicable
The Approval Process
Once you submit your request, the e-filing administrator will review it. If approved, you will have access to all services for both the legal heir and the deceased. If rejected, you will receive a reason and can make the necessary corrections before resubmitting.

Filing ITR as a Legal Heir
After approval, file the return as you would for an individual, using e-verification methods or manually signing the acknowledgment.

Calculating the Deceased Person's Income
To calculate the deceased's income, consider the period from the start of the fiscal year to the date of death. Use bank statements and other documents to estimate the income if necessary. Remember that any income from inherited assets after their death is taxable to the legal heir and should be included in your own return.

Understanding the Legal Heir's Tax Liability
The legal heir is responsible for paying the taxes due on the deceased's return but is only liable up to the value of the inherited assets.

Handling Penalties or Demands
The legal heir is also responsible for any penalties or fines the deceased would have owed, but only up to the value of the inherited assets.