Filing Income Tax Return for a Deceased Person: Legal Heir's Guide
Tax obligations don't end with death - they transfer. If a family member passes away during a financial year, their income up to the date of death is still taxable, and someone has to file that return. That someone is a 'legal heir', and the process starts with a registration step many families don't know exists.
The Basic Principle
Income earned by a person from the start of the financial year until the date of their death must be reported in an ITR for that year, filed in the name of the deceased - but filed and signed by a legal heir acting as their 'legal representative'. This is distinct from income earned by the deceased's estate after death (which is taxed separately, often in the hands of the estate as a distinct assessable entity until it's distributed, or directly in the hands of beneficiaries depending on the nature of the asset).
Step 1: Register as Legal Heir on the Income Tax Portal
Before filing, the legal heir must register on the income tax e-filing portal:
- Log in to the legal heir's own account on the income tax e-filing portal
- Navigate to 'Authorised Partners' > 'Legal Heir' > 'Add Legal Heir'
- Provide the deceased's PAN, date of death, and upload supporting documents: death certificate, PAN card of the deceased, a legal heir certificate (or succession certificate, will, or family member certificate issued by local authorities), and the legal heir's own ID proof
- Submit the request - it goes to the jurisdictional Assessing Officer (or is processed via the e-filing system) for approval
- Once approved, the legal heir can file returns on behalf of the deceased for the relevant year(s)
Step 2: File the ITR for the Period Up to Date of Death
| Aspect | How It Works |
|---|---|
| Income to report | All income earned by the deceased from 1 April of that financial year up to the date of death (salary, interest, rental income, capital gains realized before death, etc.) |
| Deductions and exemptions | Available on a pro-rata or full basis as applicable - the deceased's eligible deductions (80C, 80D, etc.) for expenses/investments made before death can be claimed |
| ITR form | Same as would normally apply based on the income sources (ITR-1, ITR-2, etc.) - selected based on the deceased's income profile |
| Verification | The legal heir e-verifies the return using their own credentials, in their capacity as legal representative of the deceased |
| Refund (if any) | Processed to a bank account - typically the legal heir needs to provide a bank account (often their own, or the deceased's account if still operational and properly linked) for refund credit |
Income After Death: Whose Responsibility?
Income that accrues after the date of death (e.g., interest credited on a fixed deposit after the death date, or rent received for a period after death but before the property is transferred) belongs to the estate of the deceased or directly to the legal heirs/beneficiaries, depending on how the asset is held and distributed. This income is reported separately - either as the estate's income (if the estate is treated as a distinct entity pending distribution) or directly in the respective heir's own ITR, in proportion to their share, once the asset/income is effectively theirs.
Penalties and Notices
If the deceased had pending tax dues, outstanding notices, or an ongoing assessment/scrutiny at the time of death, the legal heir (in their representative capacity) is responsible for responding to such notices and settling dues - though liability is generally limited to the extent of the assets inherited from the deceased, not the legal heir's personal assets.