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Submission of Income Tax Return of a Deceased Assessee

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Submission of Income Tax Return of a Deceased Assessee. If in the middle of the year, an assessee dies, but certain income has accrued to him, so tax will have to be paid on behalf of him. Who is responsible to file IT Return and pay Income Tax after death?, How to file Income Tax Return if the Taxpayer has expired, Income Tax Return of Deceased person, How to file income tax return of a deceased person, How to file income tax return for deceased person, Filing of Income Tax Return of Deceased Assessee, How to file Income Tax Return & Tax Audit report as a legal heir. Let us study the legal provisions in this case with an example.

The legal provisions as stated in the law are as follows:

(1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased.

Must Read – Section 44AE of the Income Tax Act 1961

(2) For the purpose of making an assessment (including an assessment, reassessment or re computation under section 147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (1),

(a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased;

(b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and

(c) all the provisions of this Act shall apply accordingly.

(3) The legal representative of the deceased shall, for the purposes of this Act, be deemed to be the assessee.

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(4) Every legal representative shall be personally liable for any tax payable by him in his capacity as legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with.

(5) The provisions of sub-section (2) of section 161, section 162, and section 167, shall, so far as may be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation to a legal representative.

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(6) The liability of a legal representative under this section shall, subject to the provisions of sub-section (4) and sub-section (5), be limited to the extent to which the estate is capable of meeting the liability.

For better understanding of the same, let us consider an example.
If Mr. X’s father dies on 1st July 2015, then Mr. X will need to file the return of income of his father for the Assessment Year 2015-2016 as well as for the three months from 1st April, 2015 to 30th June, 2015.

Must Read – Latest Income Tax Slab Rates

Now, the question which must be coming to our minds is how do you file return as a legal heir? Well for that you need to register as a Legal heir the option for which is available on the e-filing website of the CBDT under the head ‘My Account’. You can provide the required details there & after registering for the same, you can easily submit the return of the deceased in the capacity of a legal heir.

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About CA Ridhi Dhoot

The writer is a Chartered Accountant & a Licentiate Company Secretary. You can reach out to her at [email protected]

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