Owner file

As the deadline approaches, here’s how to file a deceased person’s computer declaration

Death fixes everything. Well, not in the case of income tax. Even after death, the tax liability of the person remains. Tax must still be paid on income received by the family on behalf of the deceased, if it exceeds the basic exemption ceiling. Currently, the exemption limit is Rs 5 lakh per year.

If the ITR is not filed, the legal heir is liable for the penalty or fines. They may also face criminal consequences. However, they are only required to pay taxes or penalties up to the amount of money he inherited.

The penalty to be paid by the heir depends on the tax liability of the deceased person. If the liability of the deceased falls into a higher tax bracket, the heir may end up paying their full share of the inheritance.

For example, suppose a person received Rs 5 lakh from the deceased person’s estate. The tax debt of the deceased is Rs 15 lakh. Legally, the heir will only be required to pay a maximum of Rs 5 lakh as tax/penalty for the deceased. The personal money and property of the heir cannot be used to mitigate the remaining liability of the deceased.

Who is a legal heir?

The legal heir represents the estate of the deceased person. He is declared the legal heir either by registered will or by a court. Registration can be done on the portal of the tax service (IT department). Here are the documents that are accepted as legal heir certificates:

  • Certificate of legal heir issued by the local revenue officer.
  • A certificate issued by the court.
  • A certificate of surviving family members issued by local authorities/Municipality/Nagar Palika.
  • Registered will
  • Letter issued by banks on their letterhead, certifying that the person is the legal representative of the deceased.

How to register as a legal heir on the DSI portal?

  • Access the official IT service portal
  • Log in using the legal heir credentials
  • Go to ‘Approved Partners’, then to ‘Register as a representative’ and click on ‘Let’s get started’
  • Click on ‘Create a new request’
  • Enter your personal data
  • Upload required documents such as death certificate, deceased’s PAN card and legal heir certificate.
  • Click on ‘Continue’ then ‘Check request’
  • Click on ‘Submit request’
  • You will receive an acknowledgment of receipt from the IT department.

Now, once the request is approved. The legal heir can file the ITR with the help of a Chartered Accountant (CA) or by himself.

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