In accordance with the provisions of article 159 of the Act, the legal representatives or heirs of a deceased person are obliged to pay all tax debts due in the name of the deceased and are considered taxable in the name of the deceased. Step 2 – Log in to the e-filing portal using the legal heir credentials The legal heir must register as a legal heir on the income tax website. To do this, we need to know who the legal heir is and how to register as a legal heir on the state income tax website. Once the registration of the legal heir is complete, you can file ITR as the legal heir on behalf of the deceased. The scanned copy of the death certificate must be submitted with other information. Upon receipt of the application e-mail, the authorities bind the PAN of the legal heir to the deceased taxpayer and a confirmation e-mail is sent to the registered e-mail address of the legal heir. In the following, legal heirs can file the deceased taxpayer`s ITR electronically using the digital signature certificate. The income to be included in the ITRs of the deceased is income from residential real estate (rental income), income from other sources (interest income). Neelima, who has a rental income of Rs 30,000 per month and interest income of Rs 10,000 per month, died on September 20, 2017. Your legal heir must submit the declaration on behalf of Neelima for the period from April 1, 2017 to September 20, 2017.
Under the Income Tax Act 1961, the income tax return must be filed by the legal heir if a deceased person had taxable income during the tax year. The legal heir must file the tax return on behalf of the deceased for income earned up to the date of death. The legal heir must register on the official website of the tax authorities to file the declaration on behalf of the testator. For the use of the institution of the legal heir, the PAN number of the deceased person and the legal heir must be registered on the e-filing portal. However, if the NAP of the deceased person is not registered, the legal heir may register in the name of the deceased. The online filing of a tax return for the deceased can also be done online via the e-filing website by the legal heir with their Digital Signature Certificate (DSC). In this article, we briefly discuss the procedure for legal registration of the heir under the Income Tax Act. Thus, once your cousin`s wife is registered as a legal representative, she can file the tax return on behalf of the deceased for the 2020-2021 fiscal year.
Please note that a late IT return for fiscal year 2020-2021 can be submitted until March 31. With regard to eligibility for the flat-rate deduction under the provisions of the law, the flat-rate deduction of actual wage income may be claimed up to a maximum of ₹50,000 when calculating income calculated below the head salary of the deceased. For registration as a legal heir, the following documents must be submitted: Open an ITR account: The refund of income in the case of a deceased person must be submitted by the legal heir. In such a case, the legal heir must first register as an Assessee representative on the tax portal available under the «Authorized Partners» tab. This is done from the account of the legal heir using his login. The income to be included in the Neelima return to be filed by the legal heir would be: To file an ITR online, the legal heir must send an email to the administrator of the Income Tax Department`s e-filing website. Send your email to [email protected] and include the following details in the email. To do this, the legal heir must create a new application and follow the steps indicated on the portal, upload the mandatory documents and submit the application. After submitting the application, the tax administration examines the application and accepts or rejects it. The legal heir can only file the deceased`s tax return if confirmation from the tax authorities is obtained,» says Anita Basrur, direct taxation, Sudit K Parekh & Co.LLP, an accounting firm. Assuming that the term deposits have been transferred to the widow, the interest income from this interest income earned after the transfer is considered taxable income on her individual income tax return.
Even if a person dies, they cannot be exempted from their tax liability. Their legal heir or representative must file the income tax return (ITR) on their behalf for income earned up to the date of death. For this purpose, the legal heir must register on the income tax website. When submitting the ITRs, the name of the examiner must be mentioned. Taxpayers may disclose the death of Mr. / Mrs. according to the gender of the deceased assessor. Through a legal representative, the declaration can be submitted for a deceased person. The name of the person submitting the declaration must be indicated in the representative declaration. The declaration would be verified electronically using various methods such as Aadhaar OTP, Net Banking, etc., or it can be verified by the legal heir who can sign the ITR confirmation and a copy of it can be sent to the Central Processing Centre (Bangalore). A legal heir is a person who represents the testator`s property.
After obtaining the legal certificate of inheritance, the person can file a tax return on behalf of the deceased. A legal inheritance obtained in accordance with the applicable legislation makes it possible to identify the heirs of a deceased person. In India, the following list of persons is declared a legitimate heir: Registration Approval Process: At the end of the above process, the legal heir application will be sent to the e-filing administrator. «The e-filing administrator will review the application and, if necessary, approve/reject it. Once the application is approved, you can use all the services for the legal heir and for the deceased. If the application is rejected, the notice of rejection will be received with a valid reason for the refusal. The reasons may be the downloading of false information or documents, etc. As a result, the legal heir should take the necessary steps to correct such a rejection,» said Archit Gupta, CEO and founder of Cleartax, a tax portal.
Step 1 – Access the Income Tax Department`s electronic filing portal. However, the liability of the legal heir would be limited to the extent of the assets inherited by the testator. Registration as a legal heir is mandatory for the electronic filing of the tax return in the name of the deceased. The PAN of the deceased person and the legal heir must be registered on the e-filing portal. However, if the deceased NAP is not registered, the legal heir may register in the name of the deceased. Here are the steps to register the legal heir: Step 1: The legal heir must access the home page of the Income Tax e-filing portal. Final submission: Once the application for registration as a legal heir has been approved, you can submit the declaration as legal heir on behalf of the deceased. ITRs may be submitted according to the standard procedure followed by any person. Did you know that the deceased can also be taxed? As ironic as it may seem, a deceased person`s tax return must be filed if they have taxable income.
His heir/legal representative must submit on his behalf the declaration of income received up to the date of death. The legal heir must register on the income tax website to file the return on behalf of the testator. In this article, we will discuss how to file the deceased`s tax return by a legal heir. Under the provisions of section 139(1) of the Income Tax Act 1961, any person (other than a business or business) whose total taxable income in the previous year exceeds the maximum amount not subject to income tax (₹250,000 for the financial year 2020-21 and the financial year 2021-22) must file a tax return. To this end, legal heirs should register as representative assessors of the deceased via their e-filing profile.