How to File Income Tax Return for a Deceased Person in India: Legal Heir's Complete Guide (AY 2026-27)

Losing a family member is overwhelming, and tax compliance is rarely top of mind during grief. But under Indian income tax law, the legal heir or legal representative of a deceased person is responsible for filing their final income tax return. Failing to do so can result in penalties, unclaimed refunds, and complications down the line.

This guide walks you through the entire process — from registering as a legal heir on the e-filing portal to calculating the deceased's income and claiming any pending refund — for AY 2026-27 (FY 2025-26).

Who Is Responsible for Filing?

Under Section 159 of the Income Tax Act, the legal representative of a deceased person is treated as an assessee for all purposes. This means they must:

• File the deceased's income tax return for the year of death (and any prior years where returns were not filed)
• Pay any tax liability from the estate of the deceased
• Respond to any pending notices or proceedings

A legal representative is typically one of the following:

If multiple legal heirs exist, any one of them can register and file on behalf of the deceased. It does not need to be all of them.

Step 1: Register as Legal Heir on the Income Tax Portal

Before you can file the deceased's return, you must register yourself as their legal heir on the income tax e-filing portal (incometax.gov.in).

How to register

1. Log in to the e-filing portal with your own PAN and password
2. Navigate to Authorized Partners → Register as Representative Assessee
3. Select category "Deceased (Legal Heir)"
4. Enter the PAN of the deceased person
5. Upload the required documents: death certificate, your PAN card, and legal heir certificate (or succession certificate / copy of the will with probate)
6. Submit the request

The request goes to the Jurisdictional Assessing Officer (AO) of the deceased for approval, which typically takes 15 to 45 days. If approval is delayed and the filing deadline is approaching, visit the jurisdictional office in person or file a grievance on the portal under Grievances → Submit Grievance.

Once approved, the deceased's PAN appears under your account, and you can switch to their profile to file the return.

Step 2: Determine the Income to Report

The deceased's final ITR covers income earned from 1 April of the financial year to the date of death.

Income that must be reported

• Salary: Salary received up to the date of death (check with the employer or refer to the final payslip)
• Pension: Monthly pension received until the date of death
• Interest income: Accrued interest on FDs, savings accounts, and bonds up to the date of death
• Rental income: Rent received or due on properties owned by the deceased
• Capital gains: If the deceased sold any asset (shares, property, mutual funds) during the period
• Dividend income: Dividends credited to the deceased's demat or bank account
• Any other income: Freelance income, royalties, agricultural income, etc.

What about income received AFTER death?

Income that accrues or is received after the date of death belongs to the legal heirs — not the deceased:

• Interest earned on the deceased's FDs after death → reported in the legal heir's own ITR
• Rent collected after death → reported by whoever inherits the property
• Salary arrears relating to a period before death → included in the deceased's return

Example: Ramesh passed away on 15 August 2025. He had an FD of Rs 10,00,000 earning 7% interest. Interest from 1 April to 15 August 2025 (approximately Rs 26,300) goes in Ramesh's final ITR. Interest from 16 August onwards is reported by the legal heir who inherits the FD.

Step 3: Gather the Documents

You'll need the same documents as a regular ITR filing, plus a few extras:

• Form 26AS / AIS / TIS of the deceased (accessible once registered as legal heir)
• Form 16 from the employer (request from HR if the deceased was salaried)
• Bank statements showing interest, dividends, and other credits
• TDS certificates (Form 16A) from banks, tenants, etc.
• Investment proof for deductions under Section 80C, 80D, etc.
• Sale deeds or broker statements if any assets were sold

Step 4: Calculate Deductions and Tax

The deceased is entitled to all deductions and exemptions they would have been eligible for had they been alive, for the portion of the year they were alive.

Key points

• Section 80C: Investments made by the deceased before death (PPF, ELSS, LIC premium, etc.) can be claimed. The Rs 1,50,000 limit applies for the full year — it is not prorated based on the date of death.
• Standard deduction: The full Rs 75,000 standard deduction (new regime) or Rs 50,000 (old regime) applies if the deceased had salary or pension income — no prorating.
• Section 80D: Health insurance premium paid by the deceased before death can be claimed.
• Tax regime: The legal heir can choose the old or new tax regime on behalf of the deceased, whichever is more beneficial.
• Tax slabs: Full-year slab rates apply. The basic exemption limit is not reduced because the person lived for only part of the year.

Example calculation

Meera passed away on 30 November 2025. Her income for FY 2025-26:

Under the new tax regime:

• Standard deduction: Rs 75,000
• Taxable income: Rs 6,21,500
• Tax (after Section 87A rebate if applicable): Calculated per the slab rates

If the total income is under Rs 12,00,000 (after standard deduction of Rs 75,000), the Section 87A rebate makes the tax nil under the new regime. In Meera's case, her legal heir would file the return with zero tax payable.

Step 5: File the Return

Once registered as a legal heir, filing the return is similar to filing your own:

1. Log in to the e-filing portal and switch to the deceased's PAN profile
2. Select the assessment year — AY 2026-27 for income earned in FY 2025-26
3. Choose the ITR form:
   • ITR-1: If the deceased had only salary, one house property, and other sources (interest, dividends) with total income up to Rs 50 lakh
   • ITR-2: If the deceased had capital gains, multiple properties, foreign assets, or income above Rs 50 lakh
4. Fill in the income details based on your calculations
5. Verify and submit — e-verification options (Aadhaar OTP, net banking, etc.) are available through the legal heir's account

Due date

The filing deadline for the deceased's return is the same as for regular taxpayers — 31 July 2026 for AY 2026-27 (assuming no audit is required). If the person died after the regular due date but before filing, the legal heir gets a reasonable time to file, though it's best not to delay.

If the deceased had unfiled returns from previous years, those can be filed as belated or updated returns subject to the applicable deadlines and penalties.

How to Claim a Refund for the Deceased

If the deceased is entitled to a tax refund (for example, excess TDS was deducted), the process depends on timing:

Refund from the current year's return

When you file the deceased's return, enter the bank account details of the deceased. The refund will be credited to that account. If the account has been closed, request the bank to keep it active until processing completes, or check if a joint holder or nominee can receive the credit.

Pending refund from a previous year

If the deceased had an unprocessed refund from a prior year, submit a refund reissue request through the portal after registering as legal heir. Upload the death certificate, legal heir certificate, and bank details. Reissue requests can take 3–6 months — track the refund status on the portal or through the NSDL/Protean website.

What About Pending Notices or Demands?

If the deceased had pending notices or outstanding demands, the legal heir must respond on their behalf. Any tax liability must be paid from the estate of the deceased — the legal heir is not personally liable beyond the value of the estate they inherit. If the demand is incorrect, the legal heir can file a rectification or appeal.

This is an important distinction: your personal assets are not at risk. Section 159(4) explicitly limits the legal representative's liability to the extent of the deceased's estate.

Frequently Asked Questions

Is there any inheritance tax on the assets I receive?

India does not have an inheritance or estate tax. Assets inherited from a deceased person are not taxable at the point of inheritance. However, any income you earn from those inherited assets (rent, interest, capital gains on sale) is taxable in your hands. For a detailed breakdown, see our guide on inheritance and tax.

What if the deceased had losses that can be carried forward?

Losses of the deceased cannot be carried forward by the legal heir. The right to carry forward losses is personal to the assessee — they expire with the person. The deceased's return should still report the losses for that year.

Do I need to file if the deceased had income below the basic exemption limit?

No return is legally required below the exemption limit, but filing is strongly recommended if TDS was deducted (to claim a refund), the deceased had high-value transactions visible in AIS, or you want a clean compliance record for the estate.

Key Deadlines at a Glance

The Bottom Line

Filing an income tax return for a deceased family member is a legal obligation, but it is also an opportunity to claim refunds, settle outstanding demands, and close the deceased's tax affairs cleanly. Register as a legal heir on the portal early (allow for processing time), gather the financial documents, and file before the due date. If TDS was deducted on the deceased's income, there is likely a refund waiting — and it belongs to the estate.

49Tax can help you identify the deceased's income sources from their Form 16 and AIS data, making the filing process significantly easier during a difficult time.