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Section 159 of the Income Tax Act states that an ITR of the deceased can be filed by the legal heir or the executor of the deceased. The article talks about the process of registration of legal heir calculation of tax.
An ITR of the deceased can be filed by the legal heir or the executor of the deceased. The legal heir is the person who represents the assets of the deceased. In most cases, the spouse or the eldest son or daughter becomes the legal heir unless expressed otherwise.
Section 159 of the Income-tax act states that:
To file the ITR of the deceased, the legal heir or executor must register on the e- filing on the portal.
The legal heir to file the ITR of the deceased has to register himself by submitting few documents.
The documents required to register as a legal heir are:
It is important to note that the most common certificate issued for the surviving family is local revenue authorities (i.e., municipality or Nagar Palika). The certificate issued is generally in the local or regional language, so the legal heir is required to make this certificate available in either English or Hindi language and get it notarized.
The PAN card of both the deceased and the legal heir is mandatorily registered with the e-filing portal.
The steps to register as a legal heir are:
Go to the e-filing portal of income tax.
Login using the credentials.
Go to my Account & then register as a representative.
Lastly, fill in the following details on the next page appeared and attach all the necessary documents.
The documents to be attached must be in a Zip file, and the documents are:
All the documents must be in a Zip file, and the size of the file must not exceed 1 MB.
Click on submit, an acknowledgment from the department will come.
After completing the above process, the request to register as a legal heir will be sent to the e-filing administrator. The request can either be accepted or rejected depending upon the administrator.
To file ITR of the deceased, these are the following steps:
It is pertinent to note that the ITR of the deceased can be filed only once, and if the income persists, then the legal heir has to file for an estate PAN.
The services available to the legal heir depend on their status, i.e., temporary or permanent.
The following services are available:
|S.No||Services available on behalf of deceased person||Temporary Legal Heir||Permanent Legal Heir|
|2||Submit ITR online||Yes||Yes|
|4||Submit Form online (self/LH)||Yes||Yes|
|8||Request for Intimation||No||Yes|
|9||Response to Outstanding Tax Demand||No||Yes|
|10||Tax Credit Mismatch||No||Yes|
|18||View Form 26AS (Tax Credit)||Yes||Yes|
The legal heir or the legal representative or executor of the estate has to file the ITR of the deceased for the income till his death. The legal heir has to file the ITR of the deceased in two parts; first when the latter was alive and second, from the date of his death till the end of the financial year.
The legal heir is liable for paying the tax of the deceased and is not liable personally for the taxes due.
However, the legal heir is responsible for the tax payable and the other sum i.e., fine, which the deceased would pay if he were alive. Thus, it can be said that the penalty proceeding can also be initiated against the legal heir. However, the liability will be limited.
Section 159 of the Income Tax Act states that the estate’s legal heir or executor can file ITR of the deceased after following a prescribed procedure and attaching certain documents.
Read our article:All you need to know about ITR-3 Filing