• Proceedings in case of death

My grandfather(a medical professional) used to file income tax returns every year. He died few days ago suddenly (in november). So do we need to Inform Income tax department in some form or just stop filing his returns altogether without informing income tax department about anything ? and do we need to file return for his income upto the date he was alive ? And what will be the procedure to claim his Assets(Cash, recievable from people, but no land). We are Hindu.
Asked 1 year ago in Income Tax from Patiala, Punjab
Hello Sir,

Yes you are required to file his Income Tax return for the FY 2016-17 normally as it was done before. Then you can inform the Income Tax Officer about his death and get his PAN cancelled.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Dear Sir,

Yes, you have to file his income tax return. You can inform the AO about his death. 

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar

Abhishek Dugar
CA, Mumbai
2942 Answers
125 Consultations

5.0 on 5.0

You can just stop filing returns. It is better to file income tax returns declaring the income earned till death. You can file in the capacity of legal heir. 

If no will is prepared then all the legal heirs should make an arrangement dividing the Assets/ liabilities left by him and signed by all the legal heirs including daughters regarding no objection.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Section 159 of the Income-Tax Act lays down the liabilities of the legal representatives of a deceased person. In most cases, the individual's spouse or eldest son/daughter assumes the status of legal heir or representative. This is unless the will mentions another person to be the executor or administrator of the estate.

By section 159, the legal heir or representative is deemed the assessee. As such, s/he will have to pay taxes liable to be paid by the deceased, including advance tax and self-assessment tax. If s/he chooses not to file the return, the tax authorities could levy the same penalty as on the deceased. However, the money for paying the taxes does not go out of the legal heir's pocket. "The amount for paying the tax has to go out from the deceased's estate. Liability of the legal representative is limited to the extent the estate is capable of meeting the liability,"

In case of a deceased person, the  the legal heir of the deceased person has to file income tax return for the financial year. the assessment of his income is to be done upto the time of his death.
The income earned in the year of death is classified in two categories:
    Income earned from April 1 till the date of death
    Income earned thereafter till the end of the financial year.

How to file IT Return please follow the following link-
Vishakha Agarwal
CA, Bangalore
438 Answers
57 Consultations

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