1. Introduction
When an individual passes away, their legal representative is responsible for managing their financial affairs, including tax obligations. This guide outlines the procedure for registering as a legal heir and filing the income tax return for a deceased person. Specimen drafts for affidavits and indemnities are provided for your assistance.
2. Legal Framework
Under Section 159 of the Income-tax Act, 1961:
- Sub-section (1): The legal representative is liable for any tax dues of the deceased.
- Sub-section (3): The legal representative is deemed an assessee and must file the income tax return on behalf of the deceased.
3. Prerequisites for Registration and Filing
A. Prerequisite Details:
- Valid User ID and Password of the Legal Heir: Ensure you have valid credentials for the e-Filing portal.
- PAN of the Deceased: Obtain the Permanent Account Number (PAN) of the deceased.
- PAN Linked with Aadhaar (Recommended): Ensure the PAN of the deceased is linked with their Aadhaar number for verification.
B. Required Documents:
- Copy of PAN Card of the Deceased
- Copy of Death Certificate
- Copy of Legal Heir Proof (Legal Heir Certificate or other proof as per norms)
- Copy of the Order Passed in the Name of the Deceased (if applicable)
- Copy of Letter of Indemnity (if required)
- Affidavit (if no will or legal heir certificate is available)
4. Step-by-Step Procedure
4.1 Registering as a Legal Heir
Access the e-Filing Portal:
- Visit the e-Filing portal.
Login with Legal Heir’s Credentials:
- Enter the User ID and Password of the legal heir.
Navigate to Registration Section:
- Go to Authorized Partners and select Register as Representative Assessee.
Initiate New Request:
- Click on Let’s Get Started and then +Create New Request.
Enter Details:
- Select the category as Deceased (Legal Heir).
- Enter the PAN, Date of Birth, and other mandatory details of the deceased.
- Upload the required documents.
Verify Request:
- Enter the OTP sent to your registered mobile number and email address.
Submit Request:
- Submit the request. Track the status under View Request.
Notification and Access:
- Upon approval, you will receive a notification via email and SMS. Log in to the e-Filing portal and switch to the Representative Assessee role.
4.2 Filing Income Tax Return
Login to the e-Filing Portal:
- Use your credentials to log in.
Select the Appropriate Assessment Year:
- Choose the relevant assessment year.
Select Return Form:
- Based on the type of income, select the appropriate ITR form (e.g., ITR-1, ITR-2).
Fill in Details:
- Enter the income details, deductions, and other relevant information.
Verify and Submit:
- Review the details, verify using the OTP, and submit the return.
Acknowledge Receipt:
- Download the acknowledgment receipt for your records.
5. Additional Requirements
A. Affidavit (if no will or legal heir certificate)
If no will or legal heir certificate is available, an affidavit must be prepared and notarized. The affidavit should confirm the identities of the legal heirs and state that no will or legal heir certificate is available.
Sample Affidavit:
AFFIDAVIT
I, [Affiant's Full Name], aged [Age], residing at [Address], do hereby solemnly affirm and state as follows:
I am the [Relationship to Deceased] of [Deceased’s Full Name], who passed away on [Date of Death].
The deceased left no valid will and no legal heir certificate has been issued.
The following individuals are the legal heirs of the deceased:
- [Name of Legal Heir 1], [PAN Number], [Address]
- [Name of Legal Heir 2], [PAN Number], [Address]
- [Additional Legal Heirs if any]
This affidavit is executed to support the request to register as the representative assessee for the deceased in accordance with Section 159 of the Income Tax Act, 1961.
Date: [Date]
Place: [Place]
Signature: [Affiant's Signature]
B. Letter of Indemnity
If the legal heir is not formally appointed by a court order, a letter of indemnity may be required.
Sample Letter of Indemnity:
To,
Assessing Officer
Income Tax Department
Subject: Request to Register as ‘Representative Assessee’ for Late Mr. [Deceased’s Full Name] [PAN Number].
I/We, the undersigned, hereby inform you that Mr. [Deceased’s Full Name], holder of PAN [Deceased’s PAN], resident of [Deceased’s Address], died on [Date of Death].
The deceased died [tick as appropriate]:
- Intestate, i.e., without leaving behind a valid will, and the following are the only surviving legal heirs:
- Leaving a will dated [Date], and we are the executors/beneficiaries.
We affirm that we are the sole legal heirs and there are no ongoing legal disputes regarding the estate.
We request the Income Tax Department to allow Mr./Ms. [Legal Heir’s Name] to act as the representative assessee for the deceased.
We agree to indemnify the Income Tax Department against any losses or claims arising from this request.
Date: [Date]
Place: [Place]
Signature: [Legal Heir’s Signature]
6. Conclusion
Proper registration and filing of income tax returns for a deceased individual involve specific procedures and documentation. By following the outlined steps and preparing the necessary affidavits and indemnities, legal heirs can ensure compliance with tax regulations.
