ITR after death: The death of a taxpayer does not extinguish his income tax obligations. Under the Income Tax Act, 2025, the responsibility of filing Income Tax Returns (ITR) and settling any outstanding tax is transferred to the legal representative of the deceased person. Failure to comply can lead to notices, penalties and complications in disposal of the property. As the ITR filing season approaches, families should ensure that the tax matters of deceased relatives are addressed in a timely manner.

Who can file ITR of a deceased taxpayer?

Section 302 of the Income Tax Act, 2025, which is analogous to Section 159 of the earlier law, puts the onus of tax compliance on the legal representative of the deceased. A legal representative may include a spouse, adult child, parent, executor named in the will, administrator of the estate, or a guardian acting on behalf of a minor legal heir. If the deceased has left a valid will, the executor is responsible for filing returns and settling tax liabilities from the estate before the assets are distributed among the beneficiaries. In cases where the deceased died intestate, legal heirs such as spouse, children or parents can assume this responsibility under the applicable succession laws.

How to register as a legal representative

A legal heir cannot directly access the income tax account of the deceased person. Registration as representative assessee is mandatory. To initiate the process, the legal representative needs to log in to his/her account on the Income Tax e-filing portal and apply under the “Authorized Partner” section. The following documents are required in the application…

• PAN of deceased taxpayer
• death certificate
• Proof of legal heir or authority to represent property

Once approved by the Income Tax Department, the representative can access the deceased taxpayer’s account through his login and start the return filing process. The income to be reported in the ITR should include all the income earned by the deceased from the beginning of the financial year till the date of death. This may include…

• salary pension rental income
• interest income
• dividend income
• other taxable income

Income generated after the death of the taxpayer is treated separately. If an executor has been appointed through a will, the executor must continue to file returns until the distribution of the estate. In the absence of a will, income from inherited property becomes taxable in the hands of the legal heirs and must be reported under their respective PAN.

Consequences of non-compliance

If returns are not filed, the tax department can issue notices and initiate assessment proceedings. Legal representatives may also face late filing fees, interest charges and other penalties applicable under tax laws. In cases where taxes are not paid, interest provisions may apply.

For example, when advance tax obligations are not met, interest can be charged under sections 234B and 234C. These provisions usually charge 1 percent interest per month on the tax deficiency. However, the liability of the legal heirs is limited to the value of the property inherited from the deceased person’s estate.

You may lose your refund

Failure to file a return of a deceased taxpayer may also result in loss of eligible tax refund. Any pending refund claim may become unavailable if the deadline for filing late returns is missed. Planning early can prevent problems Tax experts recommend identifying the legal representative early, collecting necessary documents and completing the registration process on the income tax portal, before the filing deadline approaches. Timely action can help families avoid penalties, notices and delays in property settlement.

Disclaimer: This article is for informational purposes only and is not investment advice