Last Updated:June 12, 2025, 14:50 IST
Filing is mandatory for deceased persons if income exceeds exemption limits till the date of death. Legal heirs must register on the tax portal to file.
If the deceased’s assets (like rental property or fixed deposits) continue to generate income after the date of death, that income must be included in the ITR of the legal heir or inheritor for that period.
The ITR filing season 2025 is going on, and over 14.5 lakh income tax returns have already been filed in around a week. As it is a legal obligation to report your income to the income tax department, does it also apply to deceased persons? Experts say “yes”. Filing is legally required if income thresholds are met till the date of death. Here’s what legal heirs need to know about the ITR filing for a person who has passed away:
“As per the provisions of the Income Tax Act, 1961, filing of income tax return (ITR) is mandatory even for a deceased person in respect of the income earned up to the date of death, provided the total income exceeds the basic exemption limit or otherwise attracts the requirement to file a return u/s 139 of the IT Act. The responsibility of filing such return vests with the legal heir or representative of the deceased,” said Suresh Surana, a Mumbai-based chartered accountant.
When Is ITR Filing Mandatory for a Deceased Person?
If the deceased earned income above the basic exemption limit in the financial year 2024-25 (April 1, 2024-March 31, 2025), their ITR must be filed for AY 2025-26. The exemption limit is:
- Rs 2.5 lakh (old regime)
- Rs 3 lakh (under new tax regime)
Sources of income may include:
- Salary or pension
- Interest from fixed deposits
- Rent from property
- Capital gains from shares or real estate
- Business income (till date of death)
Tax experts said that even if the person passed away mid-year, the income earned up to the date of death is taxable.
Who Can File ITR on Behalf of the Deceased?
Experts said only a legal heir or representative can file the return. This is typically:
- Spouse
- Son or daughter
- A person named in the will
- Court-appointed legal representative (if there’s a dispute)
To do this, the heir must first register as a legal heir on the income tax e-filing portal at https://www.incometax.gov.in.
“For the purposes of filing the return, the legal heir needs to be registered on the income tax website. Registration as a legal heir is mandatory for the e-filing of returns on behalf of the deceased person. The PAN of both the deceased person and legal heir needs to be registered in the e-filing portal. However, if the deceased person’s PAN is not registered, then the legal heir can register on behalf of the deceased,” Anita Basrur, partner at Sudit K Parekh & Co. LLP, said.
How to Register as Legal Heir Online?
Log on to the income tax e-filing portal — https://www.incometax.gov.in/iec/foportal/.
- On the ‘Authorised Partners’ tab, select ‘Register as Representative Assessee’
- Create a New request by clicking on ‘Let’s get Started’
- A new dialogue box would appear – ‘Category of Assessee who you want to represent’ wherein the ‘Deceased (Legal Heir)’ option needs to be selected from the drop-down menu.
- Other details such as Name, PAN, Date of Death, Bank account details of Legal heir, Reason for Registration etc. needs to be entered.
- The necessary required documents (as indicated below) needs to be attached. It is pertinent to note that the maximum file size allowed is 5 MB.
- After filing in the necessary details, Click on ‘Proceed’ and ‘Verify the Request’. To verify the request, enter the OTP received on your mobile no. and email ID of the legal heir registered on e-filing portal.
- Click ‘Submit Request’. Request has been submitted successfully will be processed by Income Tax Department within 7 days.
After approval of request by the income tax department representative assessee, legal heir will be notified on e-mail and SMS. The legal heir can login to e-filing portal with its own credentials and after login, in profile section switch to representative assessee (as legal heir). The request will also require submission of the following documents as attachments:
- Copy of the PAN card of Deceased
- Copy of the PAN card of the legal heir
- Copy of Death Certificate
- Copy of Legal Heir Proof etc.
Post-Death Income
If the deceased’s assets (like rental property or fixed deposits) continue to generate income after the date of death, that income must be included in the ITR of the legal heir or inheritor for that period.
“It is to be kept in mind that only income up to the date of death is to be captured in the return of the deceased. All income earned thereafter is taxable in the hands of the beneficiaries, legal heirs, or the estate, as applicable,” Parekh said.
Which ITR Form to Use?
Surana said the ITR form applicable to the deceased shall be determined based on the nature and composition of income earned during the relevant period, similar to any other assessee.
ITR-1 (Sahaj): For income from salary, one house property, and interest income
ITR-2: For capital gains or multiple house properties
ITR-3 / ITR-4: If deceased had income from business or profession
The ITR should be filed in the name of the deceased, but verified by the legal heir.
Deadline for Filing
The ITR deadline for AY 2025-26 for individuals (including legal heirs) is September 15, 2025.
However, if the deceased had business income and audit is applicable, the deadline is October 31, 2025.
Consequences of Non-Filing
Failing to file the ITR of a deceased person, when required, may:
* Attract notices or penalties
* Delay the processing of refunds
* Create problems in property or asset transfer
If a refund is due, it can only be claimed by filing the ITR properly.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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