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Legal heir responsible to file ITR of Deceased Person

Taxes and death are unavoidable. Even if a person has died, taxes must be paid on his or her behalf if a tax due exists, as strange as it may sound. The legal heir of a deceased individual is responsible for filing the deceased's income tax return (ITR).

Because of covid-19, many individuals have lost loved ones. They should be aware that if they are the legal heir, filing the ITR and paying any taxes due is their obligation.

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If your income is above the minimum exempted level before capital gains and other chapter IV deductions, you must submit an ITR. Apart from that, there are a number of additional circumstances in which the ITR must be filed, even if the income is below the exemption amount.

If you hold a foreign asset, have deposited more than 1 crore in a current account during the financial year, spent more than 2 lakh on a foreign trip, or have paid more than 1 lakh in power bills, you must file an ITR.

Legal heir to file ITR: The legal heir is responsible for filing the ITR on time. The legal heir may face penalties or fines if he or she fails to file on time. “As per section 159 of the Income Tax Act, the legal representative of the deceased person is responsible to pay any sum that the deceased would have been liable to pay if he or she had not died," said by one expert.

As a result, any penalty, fee, or interest due to non-filing or late filing of an income tax return will be borne by the legal heir or legal representative of the deceased person. In the event of a mistake, the legal heir will be held liable.

Read Also: Things to keep in mind while filing income tax return this year

As a result, the ITR should be filed with extreme caution. One should be able to calculate the deceased's salary with simplicity.

“Income received by or accruing to the deceased person until the date of his death shall be considered the deceased person’s income. The legal representative shall file the income-tax return on behalf of the deceased person and pay tax accordingly," said by one expert.

“Income earned after the date of death until the end of the financial year shall be considered income of the legal heir and shall be disclosed in his income-tax return," added by expert.

However, if an error is made when filing the ITR, it can be corrected later.

“If there is any error or omission in the original return, the return can be revised at any time three months before the expiry of the relevant assessment year or before completion of the assessment, whichever is earlier. Even the belated return can be revised and there is no limit on the number of times a return can be revised," said by expert.

How to submit an ITR for a deceased person: To file an ITR for a deceased person, the legal heir must first register as a "deceased (legal heir)" on the income tax filing portal.

Details such as the deceased's permanent account number (PAN), first, middle, and last names, date of death, and legal heir's bank account information will be required. A copy of the death certificate and a copy of the legal heir evidence will be required in addition to the legal heir's PAN number.

When you click the submit button, the request will be sent to the legal heir for registration. The income tax return can be filed after the registration is completed.




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