In India, it is mandatory for a salaried employee to file income tax returns. But does it mean that even the deceased person’s income tax has to be filed?
As per Section 159 of the Indian Income Tax Act 1961, the legal heir is liable to file the ITR and pay the income tax dues.
The second wave of covid-19 has claimed a lot of lives in India. It becomes imperative to understand how to file tax returns for the departed individuals.
Money9 Helpline hosted Gauri Chadha, a tax expert to help people understand how to file returns for the deceased.
Here are some questions:
Rishabh Tiwari, Pune: My neighbour made me the nominee of her bank account. After her death, I received the amount left in her bank account. Do I need to file ITR for it? The neighbour did not have a legal heir.
Chadha: I would suggest you should apply for the death certificate of your deceased neighbour from authorities. You should also submit an application to courts seeking a certificate that states your neighbour did not have a legal heir and she has kept you as a nominee. It is important to file the income tax so that the IT department does not issue a notice to you with a penalty in this case.
Kankanika Chakraborty, Kolkata: I don’t have any income other than salary which is paid in my bank account. Can I file my tax return myself?
Chadha: It is not enough, even if the TDS is being deducted. You can fill it yourself. You can file it online as well as offline. It is easy to fill ITR 1.
Ankit Kunchhal: I lost my father in April 2021. He was the proprietor of an agribusiness. He had taken a bank OD which is pending. Am I liable to repay the sum to the bank?
Chadha: In this case, a mortgage or guarantee must have been given to the bank, most probably an agricultural land. So if the land was kept as a mortgage then the banks will sell it and keep the amount which was due, to themselves and remaining to the legal heir.
If no mortgage was there then the bank will categorize it into NPA.
