Filing Income Tax Return for a Deceased Person in India: A Comprehensive Guide

Understanding Income Tax Assessee: It refers to individuals or entities liable to pay taxes as per the Income Tax Act, encompassing various scenarios like assessment proceedings, responsible income handling, loss-bearing, and entitled refunds. Types of Persons under Income Tax Act: Categories include individuals, Hindu Undivided Families, firms, companies, associations, local authorities, and artificial juridical persons, each with distinct tax implications.

Classifications of Assessees: Normal Assessee: Obligated to pay taxes, interest, penalties, or receive refunds. Representative Assessee: Pays taxes on behalf of non-residents, minors, or incapacitated individuals. Deemed Assessee: Legally obliged to pay taxes, including those undergoing assessment or refunds. Assessee-in-Default: Fails to fulfill statutory tax payment obligations, resulting in default.

Process of Filing ITR for a Deceased Person: Register as Legal Heir: Register on the Income Tax Department's website and obtain approval as the legal representative. Gather Required Documents: Documents like PAN card of the deceased, legal heir certificate, and death certificate are essential. File Income Tax Return: Use the e-filing portal to upload relevant details of the deceased's income and deductions, and digitally sign or e-verify the return.

Determining Deceased's Income: Calculate income earned by the deceased from the beginning of the financial year until the date of death, and any posthumous income is taxable for the legal heirs. Legal Responsibilities of Legal Heir: File the deceased's income tax return, settle outstanding tax liabilities, address any pending notices, and claim refunds if applicable, ensuring compliance with tax regulations.