ITR filing 2024: How to file Income Tax Return after death of a taxpayer. Check details
ITR filing 2024: How to file Income Tax Return after death of a taxpayer. Check details
ITR filing: Filing income tax return is a must for all Indian taxpayers. Even individuals who have passed away and whose income exceeds the basic exemption limit are required to file income taxes. In the absence of the deceased taxpayer, it is the legal representative of the individual who assumes responsibility for fulfilling their tax obligations. It is crucial to understand the intricacies of taxation, including the appropriate timing for filing, the role of the legal representative, and the process of transferring property.
In accordance with tax regulations in India, it is mandatory to file a tax return if the gross total income from all sources surpasses certain thresholds. Specifically, individuals below 60 years of age must file if their income exceeds Rs.2.5 lakh, individuals between 60 and 80 years must file if their income exceeds Rs.3 lakh, and super senior citizens above 80 years must file if their income exceeds Rs.5 lakh.
The legal heir must register on the income tax website to file the return for the deceased. This process ensures compliance with tax regulations and facilitates the transfer of assets. It is a crucial step in managing the deceased's financial affairs responsibly and in accordance with the law. However, this recovery cannot be more than the amount inherited by the legal representative from the deceased taxpayer.
When a person passes away, it is important to understand that the deceased individual retains the right to claim all deductions and exemptions for the entire fiscal year in which the passing occurred. Subsequently, any taxable income generated up to the time of death is subject to taxation.
It is crucial to note that any earnings derived from investments following the individual's demise are deemed the income of the lawful heirs. As such, the particular income is taxable based on the respective tax brackets applicable to the legal heirs.
The legal heir is obligated to pay the taxes associated with the deceased person's Income tax return. It is important to note that the legal heir's responsibility for these taxes is confined to the value of the assets inherited, and they are not held personally liable for the taxes owed. This means that the legal heir's financial obligation is restricted by the assets available to cover the tax liability.
Steps to register a legal heir:
1. Go to the income tax department e-filing portal. Log in to the e-filing portal using your user ID and password.
2. Scroll to ‘Authorised Partners’ > ‘Register as Representative’ and click on ‘Let’s Get Started’.
3. Click on ‘Create New Request’.
4. Select the category, enter the PAN details, date of death, and the reason for registration.
5. Upload the required documents.
6. Click on the ‘Proceed’ and ‘Verify the Request’ button.
7. Click on ‘Submit Request’, and you will get the acknowledgment from the department.
Documents needed to file ITR
Copies of the following documents are required:
> Death Certificate.
> PAN Card of the deceased.
> Self-attested PAN card copy of the legal heir.
> Legal Heir Certificate (as described above).
> The order is passed in the name of the deceased if applicable.
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