Clipped from: https://taxguru.in/income-tax/register-legal-heir-income-tax-portal.html
Death is uncertain but sure. After demise if taxpayer, legal heir is the person who takes control over all the assets and liabilities. Income tax is also one of liability and taxpayer cannot refrain himself from paying tax even after his death. The legal heir of taxpayer will be responsible for payment of tax dues. So filing of return even after death of tax payer is mandatory.
HOW TO FILE RETURN OF DECEASED PERSON
The income tax return of deceased taxpayer is filed by authorised representative i.e. legal heir. For this firstly he has to register himself as Legal Heir Representative in his income tax e-filing account. Then he can login as legal heir through his income tax account and file return on the behalf of deceased person. The income till the date of death shall be computed in name of deceased person and income after death shall be computed in name of legal heir. For Example: Divya Agrawal earned Rs.10lacs in a year from rental income in F.Y.2022-23 and she died on 05.01.2023. So rental income till 05.01.2023 shall be computed in her name and rental income after 05.01.2023 shall be computed in name of her legal heir. The return for F.Y.2022-23 shall be filed computing income till 05.01.2023 by her legal heir and balance income shall be computed in name of legal heir.
HOW TO REGISTER AS LEGAL HEIR
First of all you have to make all these documents ready-
1. PAN of deceased
2. PAN of Legal Heir
3. Bank Account details of Legal Heir
4. Death Certificate
5. Legal Heir Proof (Any of these)
- Legal Heir Certificate
- Registered Will
- Letter from bank mentioning nominee details or joint account holder at time of demise
- Family pension certificate issued by State Central Government
After getting documents ready you have to register in income tax portal as Legal Heir Representative. Steps for registering-
1. Login to Legal Heir Income Tax e-filing account by entering username (PAN) and Password.
2. Go to Authorised Partners tab and Click on Register as Representative Assessee.
3. Click on Lets get started and create new request.
4. Fill all the details like PAN, date of death, bank account details and upload the documents collected above.
5. Verify the request and submit it.
6. Request will be sent to e-filing admin for approval
7. After verification of documents, mail will be received for acceptance/rejection of request.
After receiving mail of acceptance you can login both as self and legal heir from your income tax account. You can now file the return or claim the refunds of deceased person.
There is certain procedure which is required to be followed to file return of deceased person and many other situations are also required to be seen. If appeal is filed in case of deceased person than Order against which appeal is required to be filed also needs to get uploaded at the time of registering as Legal Heir. Treatment of many tax related issues are to be seen specifically while filing return of deceased person. It is not possible for layman to consider all the situation and experts can only help them in providing correct and fair solution. Financial Tree Company helps to solve critical tax issues.
The above comments do not constitute professional advice. The Author can be reached at email@example.com. My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company).