Why should legal heirs file income tax returns for the deceased person?

Filing income tax returns for a deceased person can become difficult for the legal Heir. The legal Heir must understand the process and ensure all dues or returns are cleared to avoid legal consequences.

Filing income tax returns for a deceased person

After an individual passes away, the responsibilities for the individual's finances get passed on to the legal Heir. The law requires the legal Heir to file the tax return for the deceased individual for the current financial year. Read on to learn more about Legal Heir, filing income tax returns for a deceased person, and associated details!

What is the definition of a "Legal Heir"?

A Legal Heir is an individual who is responsible for the finances and the financial assets of a deceased person. The legal heirs can be the children or any immediate family members of the deceased person. If the deceased person had a written will, the legal Heir would have entered into the will. The key responsibilities of the legal Heir are:

  1. The legal Heir must pay the taxes the deceased person would have been liable to pay for the current financial year. 
  2. The legal Heir must include all assets inherited from the deceased person while filing their ITR. Any income generated from the inherited assets must also be included.

It is important to note that if the taxes liable are more than the value of the assets inherited by the Heir, then the liability of the Heir is limited to the value of the assets.

What are the documents required to register as a legal heir?

To register as a legal heir for a deceased individual, any of the following certificates can be utilized:

  1. A Legal Heir Certificate has been issued to the individual by the legal court.
  2. A Legal Heir Certificate has been issued to the individual by the revenue authorities.
  3. The revenue authorities issue a certificate showcasing the surviving family members of the deceased individual.
  4. A legal or registered will belonging to the deceased individual.
  5. Certificate issued by the government for the family pension.

What documents are required for filing the tax returns by the legal Heir?

The legal Heir must have the following documents while filing the tax returns for the deceased individual:

  1. Death Certificate of the deceased individual.
  2. Permanent Account Number Card (PAN Card) of the deceased individual.
  3. A copy of the PAN card belonging to the legal Heir.
  4. Certificate proof of the legal Heir or legal inheritance.
  5. If any order has been created for the deceased individual.
  6. A reason for Registration to be provided by the legal Heir.

What is the process of filing tax returns by the legal Heir?

The process of filing tax returns by the legal Heir consists of the following steps:

 

  1. Calculation of Income
    The legal Heir must calculate the income of the deceased individual for the financial year. The legal Heir can use bank statements, proof of investments, and other financial documents to calculate the taxes.
     
  2. Creation of an ITR account
    The legal Heir will have become a representative assessee of the deceased individual. To do so, they would have to register on the income-tax website under the tab "Authorized partners." The legal Heir will then upload the required documents for filing tax returns of the deceased individual.
     
  3. The approval process for Registration of the account
    Once the legal Heir submits the request, it is transferred to the e-filing administrator, who evaluates the request and documents submitted.
     
  4. Filing of the tax returns
    When the request is approved, the legal Heir can file income tax returns for the deceased individual.

Also, watch: How to file ITR for a deceased person?

Final Words

A legal heir is the legal representative of the financial assets of the deceased individual. The legal Heir must ensure that the income tax returns for the deceased individual are filed correctly and on time to avoid legal consequences.

After an individual passes away, the responsibilities for the individual's finances get passed on to the legal Heir. The law requires the legal Heir to file the tax return for the deceased individual for the current financial year. Read on to learn more about Legal Heir, filing income tax returns for a deceased person, and associated details!

What is the definition of a "Legal Heir"?

A Legal Heir is an individual who is responsible for the finances and the financial assets of a deceased person. The legal heirs can be the children or any immediate family members of the deceased person. If the deceased person had a written will, the legal Heir would have entered into the will. The key responsibilities of the legal Heir are:

  1. The legal Heir must pay the taxes the deceased person would have been liable to pay for the current financial year. 
  2. The legal Heir must include all assets inherited from the deceased person while filing their ITR. Any income generated from the inherited assets must also be included.

It is important to note that if the taxes liable are more than the value of the assets inherited by the Heir, then the liability of the Heir is limited to the value of the assets.

What are the documents required to register as a legal heir?

To register as a legal heir for a deceased individual, any of the following certificates can be utilized:

  1. A Legal Heir Certificate has been issued to the individual by the legal court.
  2. A Legal Heir Certificate has been issued to the individual by the revenue authorities.
  3. The revenue authorities issue a certificate showcasing the surviving family members of the deceased individual.
  4. A legal or registered will belonging to the deceased individual.
  5. Certificate issued by the government for the family pension.

What documents are required for filing the tax returns by the legal Heir?

The legal Heir must have the following documents while filing the tax returns for the deceased individual:

  1. Death Certificate of the deceased individual.
  2. Permanent Account Number Card (PAN Card) of the deceased individual.
  3. A copy of the PAN card belonging to the legal Heir.
  4. Certificate proof of the legal Heir or legal inheritance.
  5. If any order has been created for the deceased individual.
  6. A reason for Registration to be provided by the legal Heir.

What is the process of filing tax returns by the legal Heir?

The process of filing tax returns by the legal Heir consists of the following steps:

 

  1. Calculation of Income
    The legal Heir must calculate the income of the deceased individual for the financial year. The legal Heir can use bank statements, proof of investments, and other financial documents to calculate the taxes.
     
  2. Creation of an ITR account
    The legal Heir will have become a representative assessee of the deceased individual. To do so, they would have to register on the income-tax website under the tab "Authorized partners." The legal Heir will then upload the required documents for filing tax returns of the deceased individual.
     
  3. The approval process for Registration of the account
    Once the legal Heir submits the request, it is transferred to the e-filing administrator, who evaluates the request and documents submitted.
     
  4. Filing of the tax returns
    When the request is approved, the legal Heir can file income tax returns for the deceased individual.

Also, watch: How to file ITR for a deceased person?

Final Words

A legal heir is the legal representative of the financial assets of the deceased individual. The legal Heir must ensure that the income tax returns for the deceased individual are filed correctly and on time to avoid legal consequences.

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