The obligation to file ITR here would be as follows:
a) Income accruing before the death of a person: ITR is required to be filed in the name of the deceased under his/her PAN by the legal representative.
b) Income accruing after the death: If the deceased had prepared the will before death, the executor would have been required to file ITR before distribution. After that, the legal representatives must file the return in their personal capacity.
If the deceased has not prepared a will before death, the legal heirs are required to file ITR in their personal capacity. Thus, the interest income shall be added to the income of legal representatives or legal heirs, as the case may be.
Now, what happens if the deceased failed to write his/her will before dying, and the partition has not yet taken place. In whose hands such income will be taxed?
Well, in such a case, the estate devolves immediately to the legal heirs according to the personal law that governed the deceased, says Wadhwa.
“In such a case, whatever income accrued or received by the deceased person from the date of death till the last day of the financial year will be considered as income of the legal heir and disclosed in the income tax return,” Wadhwa adds.
And, can a legal heir file the return of the deceased assessee if a digital signature certificate (DSC) is mandatory?
Yes, a legal heir can file a return on behalf of the deceased assessee even if DSC is mandatory. Wadhwa explains that the legal heir must obtain DSC in his/her capacity for filing such a return.
To file the return on behalf of the deceased, a person has to first register as a legal heir on the income tax India filing website and enter the name, PAN and date of death of the deceased person.
Further, he/she is required to upload the scanned copy of the following documents in a zip file: A copy of the PAN card of the deceased, a copy of the death certificate, and a copy of legal heir proof as per the norms.
The income tax department will verify the request, and once the request is approved, the legal heir will be able to carry on all the e-filing-related services on behalf of the deceased.
Click here for top news alertsHow to file Income Tax Return without Form16
By CNBCTV18.com | Jul 25, 2022, 05:20 PM IST (Published)
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Taxpayers can use their salary slips, which will have a breakdown of the salary components as well as all deductions made.
The last date for filing of income tax returns without incurring any penalty is a few days away. But for harried taxpayers who are still waiting on their employers to provide them with their copy of Form 16, there is good news. Taxpayers can file their income tax returns without the inclusion of Form 16. Here’s what you need to know.
Form 16/16A is a certificate for all the tax that has been deducted at the source by the employer in the form of Tax Deducted at Source/Tax Collected at Source on behalf of the employees from their salaries. The form also includes the list of deductions that have been made, if any, as admissible under the Income Tax Act. While it is mandatory for all taxpayers to be issued a Form 16, often the form may be delayed in delivery due to full and final clearance taking upwards of 45 days in case of exit of an employee from a company
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In this situation, the taxpayers can use their salary slips, which will have a breakdown of the salary components as well as all deductions made. Using this in conjunction with Form 26AS, which is the consolidated annual tax statement showing the total tax deducted at source, tax collected at source, advance tax paid and self-assessment tax from all sources linked to the PAN account, allows taxpayers to file their ITRs.
Taxpayers should ensure that all details like additional income, deductions claimed on HRA, deductions under Sections 80C and 80D and others are calculated. If the gross income, total deductions, and total TDS come out to the same amount as the one shown in Form 26AS, then taxpayers can proceed to file their ITRs even without the help of Form 16/16A.
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