Filing ITR

Dear Siddhartha,

Hope you are doing well !!

Please first let me know the nature of income.

It depends on whose name income was due if the income was due in name of person who died then you must file ITR as a legal heir. If the income was due in his name after death then you must show it in your ITR.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

Sorry to hear about the news of demise

- After the death of a person, legal heir needs to file deceased person ITR and required to show income earned by the deceased during such period.

- In bank account details, name given is of nominee which is not necessarily is a legal heir. 

- It appears that you shared yours income details.

Thanks

Hi Siddhartha,

As a legal heir, you have to file the return on behalf of the deceased for income till the date of death. Calculate the income of the deceased from the start of the year till the date of death, and thereby the tax payable on it in the same manner as if the deceased is alive. If you don’t know the exact income, then you should refer Bank Statements, investments and other relevant documents necessary for income tax calculation.

Any income earned after the date of death from the assets inherited from the deceased is taxable in the hands of the legal heir. Legal heir should include this income inherited from the deceased in his own income while filing own income tax return.

Thanks & Regards,

Payal Chhajed

Hi

You should file return of departed soul as his Legal heir. Income earned in his name to be declared in his return.

Hope it helps

Dear Sir,

The legal heir is liable to file the ITR on behalf of the deceased. He also needs to deposit any balance income tax which must be paid.

The total earnings of the deceased from the start of the fiscal year till death will be counted as his/her total income. The profits earned by the deceased from the inherited assets are taxable in the hands of the legal heirs.

For example: A, who expired on November 20, earned Rs 70,000 as interest every month on his fixed deposits. The computed income will be: Income in the hands of the deceased: Rs 70,000 x 8 months = Rs 5, 60,000

Income in the hands of the legal heir (to be revealed in personal ITR of the Legal Heir): Rs 70,000 x 4 months = Rs 2,80,000/-

You need to file ITR 1.

The income tax returns for a deceased person has to be filed, if he/she has taxable income. His legal heir/representative needs to file the return on his behalf for the income earned till the date of death. Legal heir has to register himself at the income tax website for filing the return on behalf of deceased.  The legal heir has to attach the certificate of he being a legal heir.

As a legal heir, you have to file the return on behalf of the deceased for income till the date of death. Calculate the income of the deceased from the start of the year till the date of death, and thereby the tax payable on it in the same manner as if the deceased is alive. If you don’t know the exact income, then you should refer Bank Statements, investments and other relevant documents necessary for income tax calculation.

Any income earned after the date of death from the assets inherited from the deceased is taxable in the hands of the legal heir. Legal heir should include this income inherited from the deceased in his own income while filing own income tax return.

The legal heir of the deceased is responsible for the filing of IT Returns of the deceased. As the deposit contains your name and not the name of the deceased, please check 26AS to know how the TDS in respect of such interest income is reflected. As you are not working anywhere, you may not have any tax liability if the interest income is less than the basic exemption limit of Rs 2.5Lakhs, unless there is any TDS.