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New Delhi13 hours ago
Many people have lost their loved ones due to the corona pandemic. Many times it is seen that after the death of a taxpayer, his income tax return is not filed, but doing so is wrong. According to the Income Tax Act, it is mandatory to file Income Tax Return (ITR) for every person whose income falls within the taxable limit in the relevant financial year, even if he has died.
Who has to pay tax after the death of the taxpayer
After the death of a person, it is the responsibility of his heir to pay the income tax of that person. After filing ITR for the deceased taxpayer, the Income Tax Department permanently closes the account of that deceased taxpayer. In fact, income is assessed from the beginning of the financial year to the date of death of the income tax payer to file the return of the deceased. Income tax return of a deceased family member can be filed on behalf of the legal heir or legal representative.
What is the rule regarding this?
Under Section 159 of the Income Tax Act, 1961, if a person dies, his legal heir has to pay tax. So if you are the legal heir, then you have to first approach the Income Tax Department and get yourself registered as the legal representative of the deceased. Only then is it allowed to file IT returns on behalf of the deceased taxpayer.
If the taxpayer has not prepared a Will before his death, then as per the Indian Succession Rule, the person who is entitled to the property of the deceased will also have to comply with the income tax obligations of the person.
How will the income of the deceased be calculated?
According to the rule, the income earned from the beginning of the financial year till death is considered the income of the deceased. Income earned from property inherited from the deceased is considered taxable.
What will the successor have to do?
After the death of the taxpayer, the responsibility of filing the return falls on his successor. Heir only has to file income tax by filing his return. Apart from this, if any notice is issued before the death, then it will be the responsibility of the successor as well. His action may continue against the heir from the date of death. That is why it is better to settle all the matters on time.
These documents are necessary
Bank statements, investment documents and other relevant documents are required to file returns, so that income tax can be calculated. To file the return of the deceased person as legal heir, one has to first register with the IT department. Copy of death certificate, PAN card of the deceased person, self-attested PAN card of legal heir and legal heir certificate is required for this process.
PAN cancellation is also necessary
In the event of the death of the person, it is necessary to cancel it. The legal heir or relative of the person can apply to the Income Tax Department for cancellation of PAN. After filing the return and paying the outstanding tax, the Assessment Officer will have to file a written application for cancellation of PAN. The Income Tax Department will cancel the PAN after examining the application.