PROVISIONS FOR FILING INCOME TAX RETURN OF DECEASED PERSON

[P.D.RUNGTA]

PROVISIONS FOR FILING INCOME TAX RETURN OF DECEASED PERSON

 

Filing of Income Tax Return and liability to pay taxes on income of deceased is  same as alive person. The only difference in two is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor.

 

Some important provisions for filing return of deceased

 

1. Return upto the date of death: As per provisions of Income Tax, return is required to be filed from 1^st day of financial year to the date of death.

 

2. Return after the date of death: As per section 168(3) of Income Tax Act, 1961 a separate return is required to be filed from the date of death to the last day of the financial year. Liability to pay taxes on Income and to file return will be either on legal representative or on executor up to the date till he does not distribute property of the deceased among legal heir(s) and beneficiaries or up to the date till income on property of deceased stops to arise.

 

3. If Will is not executed by deceased: As per section 159 of Income Tax Act, 1961, where a Will was not executed by deceased in that case legal representative or executor of the deceased will be liable to pay taxes on income and file return of the deceased. If there is only one legal heir of the deceased then he will act as  legal representative, but in case of more than one legal heir any one of them with the consent of all, will act as legal representative for the purpose of income tax. As per section 157 of Income Tax Act, 1961, legal representative will be entitled to collect proportionate tax from other legal heirs as a part of their share.

 

4. If Will is executed by deceased: As per section 168 of Income Tax Act, 1961, if an executor is appointed by deceased by executing Will, then executor shall be liable to pay taxes on income and file return of deceased.

 

5. Liabilities of Legal Representative: Legal representative is liable for all lelgal matters untill the property of deceased is completely distributed. U/s 19 of Wealth Tax Act, liability to pay wealth tax on property of deceased is on legal representative. However, Income Tax Officer (ITO) cannot impose any penalty on legal representative.

 

6. Notice issued by ITO: After intimation about death of a person to an ITO, the ITO concerned cannot issue notice in name of deceased, and if he does so and makes assessment then it will be void ab initio.

 

7. Property received upon death or by will: if a person receives any property of deceased as per conditions of will or by way of distribution then Capital Gain Tax is not required to pay on such receipt of assets.

 

8. Time limit to take Probate from Court: If Will is not executed then application should be filed to  court for Probate within four month from the date of death of the assessee so that the proceedings of the court should start.

 

9. Incase of one or more legal heir: If there is only one legal heir of the deceased then return should be filed as “Estate of Deceased” in individual capacity, but in case of more than one legal heir then as per the provisions of Income Tax Act  return is required to be filed in capacity of AOP or BOI.

 

10. Set off of Carry Forward Losses: If income of deceased is having Income from Capital Gain and also contains loss under Capital Gain then it can be setoff as per the provisions.

 

11. Joint Bank Account of Deceased: if taxpayers have joint account and one of the A/c holder dies then account can be continued as it was operated before by the survivor.

 

12. Refund in case of Deceased: If refund has been claimed or to be claimed then it can be issued by appropriate name to Legal Representative Estate.

 

If an assessee dies and he is having more than one legal heir then an application should be made for new PAN. Upon receipt of new PAN it should be intimated to persons liable to deduct tax at source or if any taxes are required to be paid then it should be paid by quoting new PAN. If there is more than one executor then status in Pan Application should be filled as AOP or BOI.

Best Regards,
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)

P.D.Rungta & Co.
Chartered Accountants

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[prem...@gmail.com]

Respected Sir,


My name is Premin Antony. I request you to provide u with a way to find the account details of my deceased father. All banking details and the necessary documents of my father got lost in the house in which he was residing when he expired.


Can we approach the income tax department for getting these detail?

Awaiting your reply (prem...@yahoo.com)

Thanks
Premin Antony

[sridh...@gmail.com]

Sir,

No one is liable in the Income tax department,

What is the procedure or how to intimate the death of assesse to the Income Tax Department.

Thanks & Regards,

Sridhar

[Kalidas Ramaswami]

You should send a letter to the Assessing officer copied to the Commissioner having jurisdiction over the deceased attaching a copy of the death certificate and also quoting the PAN of the deceased.
regards
kalidas

 

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Date: Tue, 17 Mar 2015 01:25:07 -0700
From: sridh...@gmail.com
To: foru...@googlegroups.com
Subject: [CA RUNGTA PD] Re: PROVISIONS FOR FILING INCOME TAX RETURN OF DECEASED PERSON

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