Filing an Income Tax Return (ITR) and claiming a TDS refund on behalf of a deceased parent is not impractical, suggests Nehal Mota, co-founder & CEO of Finnovate.
According to Mota, Indian citizens can
apply for the tax returns on behalf of their dead parent under the government’s Income Tax Act 1961, which was amended during a recent Lok Sabha session.
Responding to a query raised during a Q&A session published by MINT, the business expert said citizens filing an ITR for their deceased parent need to obtain proof that they are the legal heir and register themselves on the income tax e-filing portal as the person’s authorised representative. Both steps are necessary, ensuring the return is filed in agreement with tax rules and refunds are credited correctly.
Mota explained how the legal heir proof can be obtained, stating that the document can be accessed through the taluk or tehsildar office or the local municipal corporation office in the area where the deceased lived. “The process typically involves submitting an application form, the death certificate, your identity and address proof, and documents showing your relationship to the deceased. Pay a nominal fee, and after verification, the Tehsildar issues the certificate. This may take a couple of weeks, so it’s best to start early,” she said.
The Finnovate CEO and co-founder also provided a step-by-step guide on how citizens filing ITR for deceased parents can register as an authorised representative. Here is how you can proceed:
Step 1: Once you have the legal heir certificate, log in to your account on the income tax portal.
Step 2: Request registration as a representative by selecting ‘Deceased (Legal Heir)’
Step 3: Upload the required documents, including the death certificate, the deceased’s PAN card, legal heir proof and details of your bank account for refund purposes.
Step 4: Once the income tax department approves the request, you will be eligible to file the ITR on behalf of the deceased person.
“The return must include all income earned from 1 April until the date the person died. Income received after the date of death (such as interest credited later) is taxable in your own hands as the legal heir,” said Mota.
Refund could be claimed in the ITR for the TDS deducted during the person’s lifetime. Citizens can also raise a ‘refund re-issue’ request after filing ITR and specifying their own validated account in case the original bank account had been closed.
