When a taxpayer dies during a financial year, the obligation to file their income-tax return does not end — it shifts to the legal representative. Under Section 291 of the New Income-tax Act, 2025, the legal heir or executor must file the deceased’s return for income earned up to the date of death, and also account for income earned thereafter in the appropriate PAN.
What are the key points regarding ITR filing for a deceased taxpayer?
- The legal representative steps into the shoes of the deceased assessee for all income-tax purposes under Section 291 of the Income-tax Act, 2025.
- Income from April 1 until the date of death is taxable in the hands of the deceased and must be filed using the deceased’s PAN.
- Income after death is taxed either in the hands of the executor (if there is a valid will) or the legal heirs (if no will exists).
- The legal heir must register as a “Representative Assessee” on the e-filing portal with the deceased’s PAN, death certificate, and legal heir proof before filing.
- Verification of the deceased’s ITR can only be done by the legal representative — the deceased’s login credentials are permanently disabled once registration is approved.
Also Read-Top 5 Common ITR Filing Mistakes in 2026 to Avoid Notices, Refund Delays & Defective Returns
Who is legally responsible for filing the ITR of a deceased taxpayer?
Under Section 291 of the Income-tax Act, 2025, when a person dies, their legal representative becomes liable to pay any sum the deceased would have been liable to pay, in the same manner and to the same extent. This liability extends to filing the return of income. The legal representative is deemed to be the assessee for all purposes of the Act, including assessment, reassessment, and recomputation proceedings.
As per the provisions governing filing of returns by legal representatives in case of death, the obligation covers two distinct periods: income earned before death and income earned after death. The legal representative must file the return for the period from April 1 of the relevant financial year up to the date of death in the name of the deceased. Any proceeding that could have been taken against the deceased, had they survived, may be taken against the legal representative.
How does the legal heir register on the income-tax portal to file the deceased’s return?
The legal representative must register on the e-filing portal as a “Representative Assessee” before they can file the deceased’s return. During registration, the heir must select the representative category as “Deceased (Legal heir)” and provide mandatory details including the PAN and date of death of the deceased, along with the reason for registration.
The following documents must be attached: copy of the deceased’s PAN card, death certificate, legal heir proof (such as a legal heir certificate issued by a court or revenue authority, a registered will, a family pension certificate, or a bank letter confirming nomination), and optionally a letter of indemnity. Once submitted, the request goes to the e-Filing Admin for approval. Upon approval, a separate dropdown for the legal heir appears alongside “Self” in the representative’s login, and the deceased’s login credentials are permanently disabled.
How is income computed and split between the deceased and the legal representative?
The income earned from April 1 of the relevant financial year up to the date of death is taxable in the hands of the deceased taxpayer. The legal representative files this return under the deceased’s PAN.
Income earned after the date of death is included in the total income of the legal representative and offered to tax under their own PAN. In practice, due to formalities involved in changing names with banks, brokers, and mutual fund portfolios, it typically takes around two to three months to transfer all investments. During this interim period, income that accrues in the name of the deceased must still be offered to tax by the legal representative in their own ITR.
For example, if a taxpayer dies on June 10, income from April 1 to June 10 is assessed in the hands of the deceased, and any income after June 10 is included in the legal representative’s total income. This bifurcation is critical because the applicable tax regime — alternative or default — for the deceased’s income depends on the regime under which the deceased was being assessed prior to death, and the legal heir must verify whether specific choices were recorded by the deceased for any earlier assessment years.
What are the due dates and consequences of missing them for a deceased taxpayer’s return?
The due date for filing the deceased’s return depends on the category of the taxpayer and whether accounts are required to be audited. For most individuals who are not subject to audit, the due date is July 31 of the relevant assessment year. For taxpayers whose accounts are required to be audited, the due date is October 31.
If the return is not filed by the due date, a belated return can be filed at any time three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. For the current cycle, the last date to file a belated return is December 31, unless the assessment is completed earlier.
Failure to file on time attracts an automated late fee, interest parameters for the payment delay, and the inability to carry forward capital losses. The legal representative is liable for these consequences just as the deceased would have been.
What is the summary of tax filing and verification for deceased taxpayers?
| Income Period | PAN Used | Filed By | Verified By | Due Date |
|---|---|---|---|---|
| April 1 to Date of Death | Deceased’s PAN | Legal Representative | Legal Representative | 31st July |
| After Death (Testate — valid will) | Executor’s PAN | Executor | Executor | 31st July or 31st October as applicable |
| After Death (Intestate — no will) | Legal Heir’s PAN | Legal Heir | Legal Heir | 31st July or 31st October as applicable |
Can you provide a worked example of tax computation for a deceased taxpayer?
Consider Mr. Sharma, a salaried individual who died on August 15, 2026. His salary income from April 1 to August 15, 2026, was ₹6,00,000. He had TDS of ₹48,000 deducted by his employer and paid advance tax of ₹10,000. His legal heir, Ms. Sharma, must file the return under Mr. Sharma’s PAN for FY 2026-27 (AY 2027-28).
Assuming the default tax regime layout applies, the tax on ₹6,00,000 is computed as follows: nil on first ₹3,00,000, 5% on next ₹3,00,000 = ₹15,000.
After claiming automated rebate options under the modern code, the net final tax liability scales down to zero since total income sits well below the ₹7,00,000 threshold line. The TDS of ₹48,000 and advance tax of ₹10,000 result in a refund of ₹58,000.
Ms. Sharma must file this return under Mr. Sharma’s PAN as legal representative, verified through her own EVC or DSC, and the refund will be processed to the deceased’s bank account or as per the legal heir’s claim.
What documents are needed to register as a legal representative on the income-tax portal?
Before the legal heir can file the deceased’s return, they must obtain approval from the e-Filing Admin by submitting a registration request as a Representative Assessee. The following documents are mandatory: a copy of the deceased’s PAN card, a copy of the death certificate, and legal heir proof.
The portal accepts several documents as valid legal heir proof — a legal heir certificate issued by a court of law, a legal heir certificate or surviving members certificate issued by the local revenue authority (Office of District Magistrate), a registered will, a family pension certificate issued by the State or Central Government, or a letter from a banking or financial institution on its letterhead with official seal and signature confirming the nominee or joint account holder particulars as at the time of demise. A letter of indemnity is optional but recommended. If the reason for registration is filing an appeal against an order passed in the name of the deceased, a copy of such order is also mandatory.
How is the deceased’s ITR verified, and what happens if verification fails?
Verification of the deceased’s ITR is mandatory for the return to be processed. An unverified return is treated as invalid and remains unprocessed by the Income-tax Department. The legal representative must verify the return using their own Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
If the return is filed without DSC or EVC, the signed ITR-V form must be sent to the Centralized Processing Centre (CPC) in Bengaluru within 30 days of uploading. The 30-day limit for e-verification or submission of ITR-V is counted from the date of transmitting the data of the return of income electronically. If ITR-V is sent by post, the date of dispatch is considered for the 30-day period, not the date of receipt by CPC.
Failure to verify within this window invalidates the return, and the legal heir must then apply for condonation of delay to belatedly verify. The legal representative cannot use the deceased’s Aadhaar OTP or biometric authentication — these methods are unavailable once the deceased’s PAN is flagged.
Which ITR form should be used for a deceased taxpayer?
The applicable ITR form depends on the nature and source of the deceased’s income, not on the fact of death. If the deceased had income only from salary, one house property, and other sources (such as interest), and total income does not exceed ₹50 lakh, ITR-1 (Sahaj) may be used, provided the deceased was not a director in a company, did not invest in unlisted equity shares, does not have income-tax deferred on ESOP, and does not have assets or financial interest in any entity located outside India.
If the deceased had income from business or profession computed under the presumptive guidelines, ITR-4 (Sugam) is the appropriate form. For HUFs or individuals with income from more than one house property, capital gains beyond the specified threshold, or foreign assets, ITR-2 or ITR-3 may be required.
The form selection criteria remain the same as for a living assessee — the legal representative must assess the deceased’s income sources and choose the correct form accordingly. The CBDT substitutes revised templates periodically, which are applicable for returns filed during the current tax season.
What happens to TDS refunds and pending demands after the taxpayer’s death?
When a deceased taxpayer’s ITR is filed by the legal representative, any TDS refund due for the period up to the date of death is processed by CPC Bengaluru. The refund is typically credited to the deceased’s bank account.
If the account is frozen or inaccessible, the legal representative must submit a written claim to the jurisdictional Assessing Officer with the death certificate, legal heir proof, and bank account details of the heir.
Pending tax demands against the deceased are enforceable against the legal representative to the extent of the estate inherited, as per Section 291 of the Income-tax Act, 2025. The legal heir cannot inherit assets clear of tax liabilities — the Department’s charge over the estate survives the death.
Can the legal heir file an updated return for a deceased taxpayer?
Yes. The updated return facility, which allows filing an updated return within 48 months from the end of the relevant assessment year, applies to deceased taxpayers as well. The legal representative can file Form ITR-U using the **Section 151** framework for the deceased’s PAN to report income that was not reported correctly or to reduce carried forward losses.
The legal representative must select the appropriate ITR form from the dropdown in Form ITR-U and pay the additional tax, if any, at the time of filing. This is particularly relevant where the deceased had foreign assets or high-value transactions that were not disclosed before death.
What are the common pitfalls legal heirs should avoid when filing a deceased taxpayer’s return?
The most frequent error is filing the deceased’s income under the legal heir’s PAN instead of the deceased’s PAN for the period up to the date of death. This leads to a mismatch with corporate reporting information and annual statements, triggering a mismatch notice from the central systems.
Another common mistake is failing to register as a Representative Assessee on the e-filing portal before attempting to file. The portal will not allow filing under the deceased’s PAN without this registration. Heirs also frequently miss the bifurcation of income at the date of death, especially for recurring income like rent or interest that continues to be received in the deceased’s name for months after death. All such post-death income must be offered by the legal heir in their own return, not mixed with the deceased’s return.
What is a worked example of filing ITR for a deceased taxpayer with income from house property and capital gains?
Consider Mrs. Patel, a 68-year-old resident individual who died on November 20, 2026. She had rental income of ₹4,80,000 from April 1 to November 20, 2026, and earned long-term capital gains of ₹2,50,000 on the sale of listed equity shares in September 2026. TDS of ₹24,000 was deducted on rent under the withholding guidelines.
Her legal heir, Mr. Patel, must file her return for FY 2026-27 (AY 2027-28) under her PAN. Under the alternative tax regime rules, the basic exemption limit for a resident senior individual is ₹3,00,000. Her total income of ₹7,30,000 (₹4,80,000 + ₹2,50,000) is taxable.
The tax computation is as follows: nil on the first ₹3,00,000, and 20% on the next ₹4,30,000, which amounts to ₹86,000. Rebate is not available since her total income exceeds the alternative regime’s ₹5,00,000 threshold. Health and education cess at 4% on ₹86,000 equals ₹3,440, making the total tax ₹89,440. After deducting TDS of ₹24,000, the net tax payable is ₹65,440. Mr. Patel must pay this amount before filing and verify the return as the legal representative. The rental income from November 21, 2026, onwards accrues to Mr. Patel and is taxable in his own return.
How does the default tax regime affect the deceased taxpayer’s return?
If the deceased was already filing under default parameters, the legal representative must continue filing the deceased’s return for the pre-death period under the same regime. The default layout applies unless the deceased had exercised an active option to opt out during previous filing cycles.
For non-business income cases, the option to choose the alternative regime can be exercised each year directly in the ITR form. For business income cases, specific tracking forms must be filed, and the option to alter layouts is bound by structural lock-in rules.
The legal heir must verify the deceased’s filing history for prior years to determine the correct regime. Modernized electronic forms include designated dropdown segments to confirm these parameters and exercise options smoothly during submission.
What are the essential steps to take after a taxpayer’s death?
- Obtain the official death certificate and a legal heir certificate from the local revenue authority or court — these are mandatory for portal registration.
- Register as a Representative Assessee on the e-filing portal by selecting “Deceased (Legal heir)” as the category, uploading the deceased’s PAN, death certificate, and legal heir proof.
- Do not wait for approval to begin collecting income details — gather all bank statements, salary forms, interest certificates, and investment statements from April 1 to the date of death.
- Determine which tax regime the deceased was following — check whether explicit opt-outs were filed in any prior assessment years, as this affects whether the alternative regime can be used for the deceased’s return.
- File the deceased’s ITR under the deceased’s PAN for the period April 1 to date of death, verified by the legal representative using EVC or DSC.
- Intimate the jurisdictional Assessing Officer with a letter enclosing the death certificate, PAN copy of the deceased, and legal heir certificate — while not statutorily mandatory as per the high court rulings, this prevents future litigation.
- Open a separate bank account or ensure the deceased’s account can receive the refund — if the refund cannot be credited, file a claim with the legal heir’s PAN details and an indemnity bond.
What Are Some Frequently Asked Questions About Filing Itr for A Deceased Taxpayer?
Is it mandatory to intimate the Income-tax Department about the death of a taxpayer?
No, there is no statutory obligation to intimate the Department. High Court precedents hold that in the absence of a specific provision, a duty cannot be cast upon legal representatives to inform the Department. However, as a practical safeguard, it is advisable to send a letter to the jurisdictional AO with the death certificate, PAN copy, and legal heir certificate to avoid future disputes.
Can the legal representative file the deceased’s return using the deceased’s own login credentials?
No. Once the legal representative’s registration as a Representative Assessee is approved by the e-Filing Admin, the deceased’s login credentials are permanently disabled. All subsequent filings, including the deceased’s pending returns, must be done from the legal representative’s login using the “Legal Heir” dropdown that appears alongside “Self” after approval.
What happens to TDS refunds when the taxpayer has died?
The refund is processed in the deceased’s PAN account. If the deceased’s bank account is active, the refund is credited there. If the account is closed or inaccessible, the legal representative must submit a written claim to the jurisdictional AO with a copy of the death certificate, legal heir proof, and an indemnity bond. The AO may then process the refund to the legal heir’s bank account after due verification.
Does the default tax regime apply to the deceased’s income?
The default layout under the modern framework represents the standard baseline. If the deceased was tracking under the alternative regime and had recorded filings accordingly, the legal representative files consistency lines. For income earned after death, the legal representative’s own applicable regime applies independently.
Can a legal representative file a revised return for income earned before the date of death?
Yes. Once registered as a Representative Assessee, the legal heir can file a revised return under the statutory time windows for the deceased’s income if the original return contained an error or omission. The legal representative must select the appropriate capacity — “Legal Heir” — in the e-filing utility while filing the return data.
What happens if the deceased had pending tax demands or refunds?
Under Section 291 of the Income-tax Act, 2025, the legal representative is deemed to be the assessee and is liable to pay any sum the deceased would have been liable to pay. Pending tax demands are enforceable against the legal representative to the same asset extent inherited. Similarly, any refund due to the deceased is processed and disbursed once the return is filed and verified.
Can the legal heir choose a different tax regime for the deceased’s income earned before death?
No. The tax regime applicable to the deceased’s income earned up to the date of death is determined by the regime parameters under which the deceased was being assessed. If the deceased was moving under default parameters, the legal representative must continue under the same regime for that window. The legal heir cannot unilaterally change the regime tracking for the pre-death duration.
Sources
- Income Tax India — Return of Income
- TaxGuru — Income Tax Compliances in Case of Death of a Taxpayer
- Income Tax Portal — Notification No. 45/2026
- Income Tax India — Due Date to File ITR
- Income Tax India — Notification No. 49/2026
- Income Tax Portal — Notification No. 50/2026
- Income Tax Portal — Returns Applicable for Individuals
- Income Tax India — Notification No. 52/2026 (ITR-U)
Need help filing a deceased taxpayer’s return? Register as a legal representative on the e-filing portal at the earliest to avoid late fees and interest. If the estate involves multiple income sources or pending assessments, consider consulting a qualified chartered accountant to ensure compliance under Section 159 of the Income-tax Act, 1961, and avoid personal liability for any tax demands that may arise.
Article Information
Published: June 4, 2026
Last Reviewed: June 4, 2026
Category: Income Tax
Regulatory Body: CBDT (Central Board of Direct Taxes)
Written by C.K. Gupta, M.Com & Tax Editor at TaxGST.in — helping 500+ clients navigate IT notices, GST audits, and ITR filings across Delhi NCR since 2009.
Official Resources
Disclaimer: This article is for informational purposes only. For legal advice, consult a qualified tax professional. Always refer to the original source document for authoritative information.
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