How to file ITR of deceased person?

Wondering how to file ITR for deceased person? Filing Income Tax Return (ITR) for a deceased person in India involves specific procedures and considerations to ensure compliance with tax laws and settlement of the deceased's financial affairs. Scroll down to get the complete details.

How to File ITR of a Deceased Person?

Here’s a step-by-step guide on how to file deceased person ITR:

• Gather Necessary Documents: Obtain the deceased person's PAN card, death certificate, and legal heir certificate from the court or a notary.

• Select the Correct ITR Form: Determine the appropriate ITR form based on the deceased person's income sources and status in the financial year of death.

For example, if the deceased had income from salary, house property, or other sources, ITR 2 or ITR 3 may be applicable.

• Legal Representative or Executor: The legal heir or executor of the deceased person's estate is responsible for filing the ITR. Obtain a Letter of Administration or Succession Certificate if there is no will, or a copy of the will if applicable.

• Prepare and File the ITR: Fill out the ITR form with the deceased person's income details for the financial year up to the date of death. Compute income, deductions, and tax liability as applicable.

• Mark as 'Filed on Behalf of Deceased': On the ITR form, indicate that the return is filed on behalf of the deceased by selecting the option 'Return filed under section 159(1)'.

• Submit the ITR: The ITR can be filed electronically through the Income Tax Department’s e-filing portal. Print and sign the ITR-V acknowledgment form generated after filing and send it to the Centralized Processing Centre (CPC) Bengaluru within 120 days.

• Settlement of Tax Liabilities: Pay any outstanding taxes owed by the deceased from their estate. Deduct tax liabilities from any refunds due to the deceased.

Ensure the legal representative has the necessary documents to establish their authority to file on behalf of the deceased.

Close the deceased person's bank accounts and transfer any funds to the legal heirs or executor as per inheritance laws. Manage tax payments and refunds based on the deceased person's financial status at the time of death.

Filing ITR for a deceased person requires careful attention to legal and procedural requirements. Seek assistance from a tax advisor or legal expert to navigate the process effectively and ensure compliance with tax laws while settling the deceased person’s financial matters.

This is how to file ITR for a deceased person.

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When it comes to tax liabilities, the deceased are not absolved of it. The ITR of deceased person has to be filed by the legal heirs. If the legal heirs fail to file the ITR, they may have to face penalty or will be subjected to interest. There are certain conditions and obligations which need to be fulfilled in such a case. Here in this answer, I will guide you through the process on how to file ITR of deceased persons.

The legal heir as mentioned above, has to file the Income Tax Return if there is a will. In the absence of the will, the legal representative such as a spouse or children can file the return.

To file ITR of the deceased, the legal heir has to register on the e filing website of the government. Here is the complete procedure for your reference:

• Visit the official website of the Income Tax Department e tax filing.

• Login to the portal using your own credentials

• Now navigate to the ‘My Account’ option and register yourself as representative

• To register go to type of request option, select New Request.

• Add/Register as representative and select ‘estate of deceased’ category

• Fill in the required details such as PAN of the estate of deceased, name of estate of  deceased, date of incorporation of the estate of the deceased, PAN of deceased, date of death, name, surname and middle name of deceased

• Now upload the documents 

• Your request will be sent for approval with the administrator

• Once approved you will proceed to filing the ITR

• Take a soft copy of the ITR form and download the XML file

• Now login to the efiling portal with legal heir credentials

• Now upload the return under e file option

• Fill the details such as PAN details,type of ITR form, assessment year, etc

• Upload the XML file which you downloaded earlier

• Sign the ITR using digital signature credentials

• Hit submit.

Make sure to do the right calculations of the tax liabilities of the deceased towards the income tax department. Any income for the financial year till the time the deceased was alive will be counted and according to the tax slabs and categories, the computation will be done. 

I hope now you know how to file ITR of deceased person.