Income Tax Return Deceased Person: There are certain bizarre characteristics of Income-tax that most people don’t know about. One such characteristic is that Income-Tax return can be filed even for a deceased person, quite shocking right? But it is true, according to the laws of Income-tax, a deceased person can also be taxed.
If a deceased person has a taxable income, their legal heir or representative can file a return on their behalf. The return must be filed on the income earned till the date of death. Commonly the spouse or the eldest son or daughter of the deceased is assumed as the legal heir unless any other person’s name is mentioned in the will of the deceased. Suppose the will mentions the name of any other person to be held as the legal heir. In that case, they must register themselves as the deceased person’s legal heir before filing the return.
This article will discuss the e-return filing of a deceased person and their legal representatives or heir.
- Who Can Be A Legal Representative?
- Laws Relating To The Income-Tax of Deceased Person
- How To Register As A Legal Representative
- Process of Approval of Legal Heir Request
- How To Check The Status of Legal Heir Request
According to Indian laws, a person who represents the assets of the deceased is assumed as their legal heir or representative. The following documents act as proof of registration as the legal heir to a deceased person:
- The certificate of Legal Heir issued by the Indian Court of law.
- The certificate of Legal Heir provided by the local revenue authority.
- The surviving family members certified by the local revenue authorities.
- Mention of the person in the will of the deceased.
The Income-Tax laws lay down certain rules regarding the valuation and filing of E-return of the deceased person in section 159 of the tax laws. Section 159 of the Income Tax Act states the following points:
- As per the tax laws, the legal representative must file the income tax return of the deceased person due from the beginning of the financial year till the date of their death.
- The tax law states that any income earned after the person’s death shall be taxed through their legal heirs.
- The income tax liability of the legal heir will be limited to the estate of the deceased person held by them and shall not be paid out of the legal heir’s income.
A person can register themself as the legal representative of a deceased person by following the steps mentioned below:
- Step 1: Visit the Income-Tax E-filing portal of the Income Tax department, which is https://www.incometaxindiaefiling.gov.in/.
- Step 2: Once the website opens, login into the deceased person’s account using their PAN number and Password.
- Step 3: Once you get access to the account, go to “My Account” and click on the “Add/Register as Representative” option from the drop-down menu.
- Step 4: A new window opens with options for request type and register as representative. In the request type, select “New Request”, and for Add As Representative, select “Register Yourself on Behalf of Another Person”.
- Step 5: Another option for Category to Register will be present and for that, select “Legal Heir” and click on the “Proceed” button.
- Step 6: In the next window, Enter all the details of the deceased person, such as PAN, Date of Death, Name. One must upload a copy of the PAN card and death certificate of the deceased person. The legal heir must also upload a copy of their PAN card and proof of Legal Heir registration.
- Step 7: Once all the details are filled in, click on the “Submit” button, and you will get a confirmation message on the successful submission of the request.
Once the request has been submitted by a person, the Income Tax department follows a procedure to register the person as a legal heir on behalf of the deceased person. The following points describe the process that the Income-tax department follows:
- Once the request has been submitted on the portal, it is sent directly to the E-filing administrator.
- When the E-filing administrator receives the request, they verify all the details and accept or reject the request depending on the verification.
- The person applying for the request of a legal heir must upload the legal heir certificate to get a permanent registration, or else they will be appointed as a temporary legal heir.
Once you file a request for the registration as a legal heir to a deceased person, you can check the status of your request by following the steps mentioned below:
- Step 1: Visit the e-filing portal of the Income Tax Department.
- Step 2: Once the website opens, login into the account of the deceased person.
- Step 3: When you get access to the account, go to the “My Account” option and click on the “Add/Register As Representative” option from the drop-down menu.
- Step 4: A new webpage will open with some options. Select “view request” for request type and select “Register yourself on behalf of another person” to add or register as a representative option. Once done, click on proceed.
- Step 5: A new webpage will open displaying your request. It will either show pending, approved or rejected. If your request is rejected, the reason for rejection will also be mentioned.