Tax Obligations for Successors of Deceased Taxpayers: A Guide to Filing ITR

Income Tax Return Filing and TDS Claiming After a Taxpayer's Death

Key Points:

• The procedure for filing an Income Tax Return (ITR) of a deceased taxpayer varies depending on whether a valid will was made or not.
• In case no will is made, the legal heirs are required to file one ITR from 1st April till the date of death.
• If a valid will is made, the executors are responsible for filing ITR till all assets are distributed as per the will.

Filing ITR for a Deceased Taxpayer

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• Legal Heirs are liable for the tax liability payable by the deceased and are responsible for filing the return of income from 1st April till the date of death.
• Legal heirs can file ITR for claiming the refund of TDS (Tax Deducted at Source).
• To file the ITR of the deceased, any legal heir can request to be registered as a legal heir with the income tax department through the income tax website.

Registration as a Legal Heir

• The following documents are valid and sufficient for registering a legal heir as a legal representative with the income tax department:
  • Legal Heir Certificate issued by Court of Law /Local Revenue Authority.
  • Surviving family member certificate issued by the Local Revenue Authority.
  • Family Pension certificate issued by Central/State Government.
  • Registered will.
  • Letter issued by the banking or Financial Institution in their letter head, with official seal and signature mentioning the particulars of nominee or joint account holder to the account of the deceased at the time demise.

Timeline:

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• The first ITR will be filed for the period beginning from the date of death till 31st March of the year in which the testator dies.
• For subsequent years, ITR will be filed for the full year every year.