For example, if a person receives Rs 8 lakhs as his share of his father`s property and his father has a tax debt of Rs 9.5 lakhs, then he cannot be obliged to pay more than Rs 8 lakhs. The liability of the legal heir is limited to the value of the inherited property. Open an ITR account: The tax return 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 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. The legal heir is responsible for the tax payable, as well as the other amount, i.e. the penalty, fine or interest, that the testator would have owed if he had not died. This means that the fine procedure can also be initiated against the legal heir due to a default of the testator. However, his liability is limited to the extent of the property inherited by the testator.

Step 2 – Sign in to the e-filing portal using the legal heir credentials How do I register as a legal heir on the IT portal? In the eyes of the law, the legal heir is the person who represents the property of the deceased. To register as a legal heir, the following documents are accepted as legal heirs: If the ITR is not filed, the legal heir is required to pay the penalty or fine. They can also have criminal consequences. However, you are only responsible for paying taxes or penalties in the amount of money inherited from him. Step 1 – Access the Income Tax Department`s electronic filing portal. 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. Last update: The CBDT issued a circular on September 9, 21, extending deadlines for certain direct tax regulations for AY 2021-22. 1. Extension of ITR submission deadline: i) ITR submission by taxpayers not subject to the audit will be suspended from September 30, 21 to September 31. December 21 extensionii) ITR filing for tax audit cases is extended until February 15 22 iii) ITR transfer pricing submission is extended to February 28 22 (iv) ITRs` submission of late or revised FY 20-21 is extended from December 31, 21 to March 31, 222. Submission of the audit report:i) The deadline for submission of the audit report is extended until 15 January 22ii) The deadline for submission of the audit report for transfer pricing cases is extended to 31 January 22 Assuming that the term deposits have been transferred to the widow, the interest income from them is treated as taxable income on her individual tax return after the transfer.

The penalty to be paid by the heir depends on the tax liability of the deceased. If the testator`s liability falls into a higher tax bracket, the heir may end up paying his or her full share of the inheritance. Now that the application has been approved. The legal heir can submit the ITR with the assistance of an auditor (CA) or himself. 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. All income from property inherited by the deceased after the date of death is taxable in the hands of the legal heir. The legal heir must include this income inherited from the testator in his own income when filing his own income tax return. My cousin passed away in January 2021.

All his savings bank accounts have now been transferred to his wife. What is the procedure for filing a deceased person`s tax return by their legal heir or representative? 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: Did you know that deceased persons can also be taxed? As ironic as it may seem, a deceased person`s tax return must be filed if they have taxable income.