Legal Heir Return
Let`s understand with an example. If a person with rental and interest income dies on September 20, 2021, their legal heir must file the return on their behalf for the period from April 1, 2021 to September 20, 2021. How do I register as a legal heir on the IT portal? Now that the application has been approved. The legal heir can submit the ITR with the assistance of an auditor (CA) or himself. Registration as a legal heir is mandatory for the electronic filing of the tax return in the name of the deceased. The PAN of the deceased person and the legal heir must be registered on the e-filing portal. However, if the deceased NAP is not registered, the legal heir may register in the name of the deceased. Here are the steps for registering the legal heir: The income to be included in the Neelima declaration to be submitted by the legal heir would be: details such as the PAN of the deceased, date of death, reason for registration, details of legal heirs, etc. would be required. In addition, documents such as a copy of the deceased`s PAN card, a copy of the death certificate, a copy of the legal proof of inheritance and a copy of the compensation letter, etc. should be uploaded. The legal heir is responsible for any tax, penalty, fine or interest payable that the testator would have had to pay if he or she had not died.
This means that criminal proceedings for default by the testator can also be initiated against the legal heir. A person whose total income exceeds the basic exemption limit must file an income tax return (ITR) in accordance with the Income Tax Act (I-T) of 1961. This obligation must also be fulfilled in the event of the death of a person. For example, suppose a person receives Rs 5 lakh from the deceased`s property. The tax debt of the deceased is Rs 15 lakh. Legally, the heir is only required to pay a maximum of Rs 5 lakh as tax/penalty for the deceased. The heir`s personal money and property cannot be used to mitigate the testator`s remaining liability. Under the provisions of section 139(1) of the Income Tax Act 1961, any person (other than a business or business) whose total taxable income in the previous year exceeds the maximum amount not subject to income tax (₹250,000 for the financial year 2020-21 and the financial year 2021-22) must file a tax return.
My cousin passed away in January 2021. All his savings bank accounts have now been transferred to his wife. What is the procedure for filing a deceased person`s tax return by their legal heir or representative? In the eyes of the law, a legal heir is the person who represents the testator`s property. To register as a legal heir, the following documents are accepted as legal heir certificates: The legal heir must include rental income and interest income in their ITRs. If the excess tax (ATD) was deducted in the hands of the deceased taxpayer, it may be claimed as a refund when the tax return is filed by the assessor. In addition, the bank details of the representative appraiser should be provided on the tax return for fiscal year 2020-21, and any refund can be claimed by the widow. The legal heir represents the deceased`s property. He is declared a legitimate heir either by the registered will or by a court. Registration can be done on the Income Tax Service (IT Service) portal. Here are the documents accepted as legal heirs: The penalty to be paid by the heir depends on the tax liability of the deceased.
If the testator`s liability falls into a higher tax bracket, the heir may end up paying his or her full share of the inheritance. Neelima, who has a rental income of Rs 30,000 per month and interest income of Rs 10,000 per month, died on September 20, 2017. Your legal heir must submit the declaration on behalf of Neelima for the period from April 1, 2017 to September 20, 2017. The legal heir is responsible for paying the taxes incurred in the deceased`s tax return. However, he is not personally responsible for the taxes owed. The liability of the legal heir is limited to the extent that the assets inherited from him are suitable for the execution of the liability. Last update: The CBDT issued a circular on September 9, 21, extending deadlines for certain direct tax regulations for AY 2021-22. 1. Extension of ITR submission deadline:i) The submission of the ITRs by taxpayers not subject to audit will be suspended from September 30, 21 to September 31. December 21 extensionii) ITR filing for tax audit cases is extended until February 15 22 iii) ITR transfer pricing submission is extended to February 28 22 (iv) ITRs` submission of late or revised FY 20-21 is extended from December 31, 21 to March 31, 222. Submission of the audit report:i) The deadline for submission of the audit report is extended until 15 January 22ii) The deadline for submission of the audit report for transfer pricing cases is extended to 31 January 22 If the income derives from the property inherited from the deceased after the date of death, it is taxable in the hands of the legal heir.