How to file ITR of deceased person is one of the most common concerns faced by families after the death of a loved one. Even though the individual has passed away, their tax obligations don’t vanish. Legal heirs are required to complete the final income tax return filing online on their behalf.
In this comprehensive guide, we’ll explain in detail how to file ITR of deceased person, including who is eligible, what documents are required, and how to ensure compliance with Indian tax laws. This guide is tailored for 2025 and will help you avoid mistakes and penalties, while also understanding your responsibilities as a legal heir. Whether you’re managing deceased tax filing for a parent, spouse, or other family member, this article walks you through each step. If your family member was also involved in running a business, you might want to check out services like private limited company registration or one person company registration to understand the business compliance aspects.
Who Is a Legal Heir?
Understanding who qualifies as a legal heir is crucial before you begin the process of how to file ITR of deceased person. According to Indian law, a legal heir is an individual who has the rightful claim over the assets and responsibilities of the deceased.
The legal heir could be:
- A spouse (husband or wife)
- Children (including adopted children)
- Parents of the deceased
- Siblings (if no spouse or children exist)
- Anyone mentioned in a legally recognized will
To establish yourself as a legal heir for income tax purposes, you will need proper documentation:
- Death certificate of the deceased
- PAN card of the deceased
- PAN card of the legal heir
- Legal heir certificate issued by municipal authority, court order, or registered will
- Proof of relationship (Aadhar, birth certificate, etc.)
It is mandatory to complete these formalities before proceeding with the legal heir income tax return on behalf of the deceased. These documents prove your eligibility to file the return and access the Income Tax portal for that purpose. For business owners, ensuring your digital signature certificate (DSC) is updated and valid can help in smoother filings.
Why Filing the ITR of a Deceased Person Is Mandatory
Many people assume that when someone dies, their financial responsibilities die too. That’s not the case with income tax. Understanding how to file ITR of deceased person also includes understanding why it must be done.
Here are the key reasons:
- The Income Tax Act requires that income earned by any individual from April 1st of the financial year until their date of death must be reported.
- If the taxable income during that period exceeds the basic exemption limit (currently ₹2.5 lakh), deceased tax filing becomes mandatory.
- Legal heirs are required to ensure that taxes are paid on behalf of the deceased.
- Failure to do so may result in penalties under Sections 270A (for under-reporting income) or 276CC (for failure to file returns).
- Income Tax refunds, if any, can only be claimed once the ITR is properly filed.
So, filing is not optional—it is a legal duty that must be completed accurately and on time. If the deceased was registered under GST for their business activities, it is also essential to understand the GST registration process and ensure compliance, as GST liabilities continue even after death.
Step-by-Step: How to File ITR of Deceased Person
Now let’s break down the complete process of how to file ITR of deceased person. This step-by-step guide will help legal heirs navigate the filing with confidence and clarity.
Step 1: Register as a Legal Heir on the Income Tax Portal
Before you can file the return, you must be recognized as a legal heir by the Income Tax Department.
Steps include:
- Log in to the Income Tax Portal using your PAN.
- Go to ‘My Account’ and select ‘Register as Legal Heir’.
- Upload the required documents:
- PAN and Death Certificate of the deceased
- PAN of the legal heir
- Legal heir proof (Municipal certificate, court affidavit, registered will, etc.)
- PAN and Death Certificate of the deceased
- Wait for approval, which usually takes 3 to 7 working days
Only after this approval can you proceed with deceased tax filing.
Step 2: Gather and Compute the Income of the Deceased
Collect all the income earned by the deceased from the start of the financial year to their date of death. This may include:
- Salary slips
- Pension statements
- Bank account interest
- Rental income
- Capital gains from sale of property or shares
- Investment income (FDs, mutual funds, etc.)
You must calculate the gross total income and check if it crosses the taxable threshold. If yes, proceed to the next step in how to file ITR of deceased person.
Step 3: File the ITR on Behalf of the Deceased
Once income is computed:
- Choose the appropriate ITR form (ITR-1, ITR-2, etc. depending on income type)
- Enter all income details, deductions, and taxes already paid (like TDS)
- Mention that the return is being filed as a ‘Legal Representative’
- Submit the ITR and complete e-verification using Aadhaar OTP, EVC, or Net Banking
Note: Any income earned after the date of death (from rental property, investments, etc.) should be declared in the legal heir’s ITR, not the deceased’s.
Tax Liability of Legal Heirs
One critical aspect in learning how to file ITR of deceased person is understanding your tax liability as the legal heir. You are not automatically liable for all dues of the deceased.
- You are liable only up to the value of assets you inherit.
- If there are unpaid taxes or pending dues, they must be settled before distributing assets.
- If the deceased received a tax notice before death, you may need to respond on their behalf.
- Penalties or interest charges may be levied for delayed filing.
Proper and timely filing of the legal heir income tax return helps avoid these complications.
Common Mistakes to Avoid in Deceased Tax Filing
When managing how to file ITR of deceased person, avoid these frequent errors:
- Not registering as a legal heir before filing
- Uploading wrong or incomplete documents
- Filing ITR under the wrong form
- Declaring post-death income in the deceased’s return
- Missing the e-verification step after filing
- Delaying the filing beyond the due date (usually July 31)
By avoiding these mistakes, you can ensure that the deceased tax filing is accepted without issues.
Documents Required for Filing ITR of a Deceased Person
Before filing the ITR, keep the following documents ready:
- PAN card of the deceased
- PAN card of the legal heir
- Death certificate issued by a competent authority
- Legal heir certificate or registered will
- Income documents like Form 16, Form 26AS, bank statements
- Proof of tax deductions, if any
- Indemnity letter (if specifically required by the department)
These documents form the foundation of successfully filing the legal heir income tax return.
Why Choose Finodha for Deceased ITR Filing?
Filing the ITR for a deceased person can be overwhelming. Let Finodha take the burden off your shoulders. We specialize in accurate, timely, and affordable deceased tax filing and legal heir income tax return services.
Why Finodha?
- Quick filing within 3 business days
- Step-by-step support with documentation
- Trusted by over 15 lakh Indian taxpayers
- No hidden charges, 100% transparency
Need assistance with how to file ITR of deceased person? Contact Finodha today.
Conclusion
Knowing how to file ITR of deceased person is an essential responsibility for every legal heir. Whether it’s understanding legal formalities, gathering documents, or ensuring timely compliance, each step matters. With the right guidance and professional support, the process can be completed smoothly and lawfully.
If you are unsure about any step in the legal heir income tax return process, don’t take chances — reach out to Finodha and get expert help today.
Frequently Asked Questions (FAQs)
Q1. How to file income tax return of a deceased person?
You must register as a legal heir on the income tax portal, compute the income up to the date of death, and file the ITR under the legal heir’s login with all required details and documents.
Q2. What documents are needed for ITR of a deceased person?
You need the PAN and death certificate of the deceased, your own PAN, legal heir certificate, income proofs like salary slips and Form 26AS, and other supporting documents.
Q3. Who is responsible to file ITR after death?
The legal heir of the deceased individual is responsible for filing the final income tax return on their behalf and handling any associated liabilities.
Q4. Can I file ITR without a legal heir certificate?
No. A legal heir certificate or equivalent document (such as a registered will or court affidavit) is mandatory to get approval for filing on behalf of the deceased.
Q5. What happens if I don’t file the ITR of a deceased person?
You may face legal notices, penalties, or delay in accessing refunds or assets if the required ITR is not filed.
Q6. Can the refund be credited to my bank account as legal heir?
Yes. Once the ITR is processed and approved, the refund will be credited to the bank account of the legal heir provided during the registration process.
Q7. Is the filing process different if the deceased had multiple income sources?
Yes. The ITR form selected must reflect all types of income, such as salary, rental, and capital gains, depending on the deceased’s sources.
Q8. Do I need to file a separate ITR for post-death income?
Yes. Income received after the date of death (such as interest or rent) must be reported under your own PAN as the legal heir in your ITR.
More Information: https://taxinformation.cbic.gov.in/
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