How to file tax return and obtain TDS refund on behalf of deceased parent
As soon as a parent passes away, their income up to the date of death is liable to be taxed. Their return and refund due has to be filed and claimed by the legal heir.
Who can claim the return The legal heir or representative of a deceased individual has the right to file the income tax return of the deceased person. Normally, it would be a spouse, child, or other close relative who has become a legal heir by securing legal heir certification through records such as a succession certificate, will, or a notarised affidavit accepted by the income tax department.
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Registering as a legal heir Prior to filing the return, the heir must enrol in the income tax e-filing portal as the legal heir of the deceased. It involves entering into their own account and uploading documents such as the death certificate of the deceased, PAN card, and legal heir certificate. The heir can access filing the return once cleared by the department.
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Filing the income tax return The return is filed as if the deceased person were alive. The income received up to the date of death is reported, and the deductions and exemptions available are to be claimed. The legal heir must report the salary, pension, bank interest, or any other tax-paying income correctly as would have been expected from the deceased parent.
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Claiming a TDS refund If tax deducted at source on the parent's income is more than what is actually payable, a refund must be received through the return. The refund amount, wherever payable, will be credited in the bank account of the legal heir after furnishing the return. It is therefore required to update bank details in the heir's name on the e-filing portal during registration.
Tax obligation after death The legal heir is responsible for paying the tax liability due on income reported in the return. The payment should be made from the estate of the decedent, and not from the money of the heir. In case the value of the estate is not much, the liability only extends to the extent of assets left behind, so that the heir is not burdened with more than what he inherits.
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The bottom line Reporting of income tax return for deceased parents helps in compliance with tax laws and legal claiming of refunds, if any. With registration as a legitimate heir, honest reporting of income, and reporting bank account details, the heirs can perform the procedure without any difficulty. It is a responsibility fulfilling account closure with legal recovery of dues.
