ITR filing 2024: Avoid penalty and worse, just file the Income Tax Returns of deceased person

New Delhi: The last date to File Income Tax Returns (July 31, 2024) is approaching. If you have not filed ITR yet, you must be planning to do it. Failing to file income tax returns will attract a hefty penalty. So, to avoid it, one must pay Income Tax within the original deadline. However, there is some confusion in the public about whether it is mandatory to file an income tax return of a deceased person. Especially so if they have tax dues.

Know here that one cannot escape from tax liability even after death. If the total taxable income of a deceased person exceeds the basic exemption limit, then it is mandatory to file ITR on his/her behalf under Section 139 (1) of the Income Tax Act.

Who will fill the ITR of the deceased?

As per the Income Tax law, if the deceased has left a will, then individual’s heir will have to file ITR on dead person’s behalf. If there is no will, then the spouse or their child can be considered the legal heir. The legal heir will have to pay the outstanding tax of the deceased. Tax liability will be calculated on the basis of earnings from the beginning of the financial year till the day of death.

Responsibility of heir

Tax liability arises only when the heir has inherited assets. If nothing has been inherited then there will be no tax liability. Under the Income Tax law, the heir is liable to repay the liability up to the amount he has inherited.

How to file ITR of the deceased

To file the return of the deceased, one will have to go to the ‘e-filing portal’ of Income Tax and register oneself as a legal heir. If the PAN of the deceased is not registered then the legal heir can get the PAN registered on behalf of the deceased. The successor will have to login to the ‘e-filing portal’ with his/her user ID and password. After this, Register as Representative in Authorized Partners and click on Create New Request.

After this, details of death certificate, PAN card etc. of the deceased will have to be given. The representatives will also have to submit their PAN and heir’s certificate.

The tax officer will approve your request after reviewing your documents. After this the record will be updated on the portal.

Only after this can the representative file the ITR of the deceased.

Disadvantages of not filing the Income Tax Return

There are many disadvantages of not filing the return of the deceased. If any tax has been deducted from their account, then legal heir will not get the refund.

As a legal heir, you will have to pay penalty and late fees on top of the outstanding tax. The Income Tax Department may consider showing income as tax evasion. If tax evasion is proved then fine and punishment can also be imposed.

If there is tax liability in the name of the deceased, then the legal heir should inform the Income Tax Department about the death of the person in time. Not informing the Income Tax Department will be considered as tax evasion. Failure to inform or not pay tax can result in heavy fines.

 Process of filing ITR of deceased person: If the total taxable income of a deceased person exceeds the basic exemption limit, then it is mandatory to file ITR on his behalf under Section 139 (1) of the Income Tax Act.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today