Filing of Income Tax Returns in Case of a Deceased Person under the Income Tax Act, 1961

The demise of an individual not only brings emotional loss but also necessitates the fulfillment of various legal and financial obligations. One such key responsibility is the filing of the deceased person’s income tax return, which legally vests with their legal heir(s). The Income Tax Act, 1961, lays down a structured framework to manage such situations and clearly outlines the duties of the legal representative.

This article provides a detailed overview of the legal obligations, filing procedures, and compliance requirements involved in filing income tax returns on behalf of a deceased individual in India.

1. Legal Provision: Section 159 of the Income Tax Act, 1961

As per Section 159, the legal representative of the deceased shall be liable to pay any sum which the deceased would have been liable to pay had they not died. This includes the responsibility to:

• File income tax returns for the relevant period,
• Respond to notices from the Income Tax Department,
• Pay pending tax dues, and
• Facilitate refunds, if applicable.

The legal heir, however, is liable only to the extent of the estate inherited.

2. Who is Considered a Legal Heir?

A legal heir or legal representative can be:

• A family member nominated by the deceased,
• A person named in the will,
• A person appointed under succession laws (Hindu Succession Act, etc.),
• A person possessing a succession certificate or court order.

In income tax matters, the legal heir must register themselves on the Income Tax e-filing portal to act on behalf of the deceased.

3. When is Return Filing Required for a Deceased Person?

A return must be filed for the deceased if:

• Their income till the date of death exceeds the basic exemption limit.
• They have taxable capital gains, business income, rental income, or income from other sources.
• TDS has been deducted, and a refund is due.
• The deceased was under scrutiny or reassessment, and the return is pending.

Basic exemption limits (for FY 2024–25):

4. Other Common Scenarios Where Return Filing May Be Required

Besides regular return filing, the legal heir may also need to file or represent in the following situations:

 Filing an Appeal

• If any order or assessment has been passed in the name of the deceased, and an appeal is required against such an order, the legal heir must file it on their behalf.

 Submitting Service Requests

• To initiate refund re-issue, seek rectification of mistakes, or respond to outstanding tax demands arising from completed assessments or proceedings in the deceased’s name.

 Filing Condonation Requests

• In cases where the return was not filed during the lifetime and the due date has expired, a condonation request can be submitted under Section 119(2)(b) to allow filing for genuine hardship.

 Responding to Notices

• If a notice or intimation is received under sections such as 143(1), 139(9), or 148, even after death, the legal heir is responsible for compliance and furnishing a response.

These are important from both a compliance and estate planning perspective to prevent future litigation or tax liabilities.

5. Step-by-Step Process for Legal Heir Registration

Step 1: Log in to the Income Tax e-Filing Portal

Step 2: Go to “My Account” → “Authorised Partners” → “Register as Representative”

Step 3: Choose ‘Register as Legal Heir’ and enter:

• Details of the deceased (PAN, name, date of birth, death)
• Upload supporting documents:
  • Copy of the Death Certificate
  • Legal heir certificate or succession document (Will, Affidavit, Court Order)
  • PAN of the legal heir
  • ID proof of the legal heir

Step 4: Wait for approval from CPC/Assessing Officer

Once approved, you will be able to act on behalf of the deceased using your own login credentials.

6. Filing the Return of Income

After registration is approved, the legal heir can proceed to file the return:

• Choose the appropriate ITR Form (ITR-1 to ITR-4 depending on income type).
• Select the correct assessment year and fill the details as per records.
• Mention that the return is being filed by the legal heir under verification.
• Upload the return and complete e-verification using Aadhaar OTP, DSC, or EVC.

7. Treatment of Post-Death Income

If the deceased’s assets continue to generate income (e.g., rent, interest), such income post-death belongs to the legal heir or the estate.

There are two approaches:

• Estate is not yet distributed: File return in the name of “Estate of Late [Name]” as a separate taxable person.
• Assets are inherited: Legal heir includes such income in their own return.

8. Tax Liability and Refunds

• The legal heir is responsible only to the extent of the estate received.
• Any pending tax dues must be paid by the legal heir before filing.
• Refunds are credited to the legal heir’s account, and a request can be submitted via the “Refund Re-issue” option, if delayed.

9. Due Dates & Penalties

Filing after the due date may attract interest under Sections 234A/B/C and a late fee under Section 234F unless condonation is granted.

10. Summary Checklist

11. Important Note on Unauthorised Filing Practices

It is important to note that filing income tax returns using the login credentials of a deceased person or verifying the return using the deceased’s Aadhaar-based OTP or Digital Signature Certificate (DSC), is unauthorised and considered a violation under the Income Tax Act, 1961 and the Information Technology Act.

Such practices may lead to:

• Invalidation of the filed return,
• Legal consequences for impersonation or misuse of credentials, and
• Rejection of refund claims or rectification requests.

Instead, the legal heir must register themselves as the authorised representative on the income tax portal and file returns in compliance with due process.

Conclusion

Handling income tax matters of a deceased person requires care, compliance, and timely action. The Income Tax Act, 1961, empowers the legal heir to act on behalf of the deceased and ensures that the estate is taxed fairly and transparently. If you’re unsure about the process, it is advisable to seek professional assistance to ensure compliance and avoid penaltie