Legal heirs must now navigate a more structured process to settle the income tax obligations of deceased taxpayers, including registering on the tax portal, handling notices, and protecting estate assets to avoid further liabilities.
Death does not end a taxpayer’s obligations to the income tax department, and legal heirs may still have work to do. According to Business Today and reporting in The Economic Times, the first step is to notify the assessing officer about the death and confirm who is acting as the legal representative. Where there is no formal heir, responsibility can pass to the person who inherits the deceased’s assets.
The legal representative must file the deceased person’s return for income earned from the start of the financial year up to the date of death. That can also include any return that was already overdue for an earlier assessment year. Income arising after death should not be folded into the deceased’s own return, because it belongs to the estate or the beneficiaries, depending on the circumstances, according to Business Today and LiveMint.
Before filing, the heir has to register on the income tax portal with documents such as the death certificate and PAN details for both parties. Proof of heirship may include a will, succession certificate or an affidavit filed through the portal. Once the request is approved by the assessing officer or the Centralised Processing Centre, the representative can file and verify returns electronically. Tax specialists quoted by The Economic Times said the approval also allows the heir to deal with notices on the portal.
Notices issued after death need careful scrutiny. Rahul Charkha, a partner at Economic Laws Practice, told The Economic Times that the heir should log in after approval, identify the type of notice and note the response deadline. Where a notice is valid, the representative must answer it within time and supply the requested records. If a notice is issued in the name of someone who has already died, the heir can challenge it.
The tax bill itself does not automatically become the personal debt of the heir. As LiveMint and Upstox reported, liability is generally limited to the value of the estate, although cases started while the taxpayer was alive can continue against the representative. Legal heirs are also warned not to distribute or mortgage inherited assets too quickly while dues or proceedings remain unresolved, because mishandling estate property can create further exposure. The practical message is simple: establish the facts, secure the assets, register promptly and make sure the deceased’s final tax affairs are closed properly.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
