Clearing check

This query is : Resolved

manish (Querist)
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22 February 2016 Dear Sir, I want guidance from you, our relative file ITR for getting refund of TDS by ONGC. returns file as a legal hair but IT department had issue cheque on name of died person name.till it's OK but now problem is that how can that cheque clear of named died person. pls guide to us process of that cheque deposit method. thanks

manish

manish (Querist)
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23 February 2016 but sir IT department CPC have been issued refund cheque and cheque issue on name of died person. and also I have already received refund cheque with name of died person. then in this situation how can I clear that cheque.and where it cheque deposit without bank account of died person.who had already died on 2007.pls guide urgent.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 I understand the urgency and complexity of the situation. When a refund cheque is issued in the name of a deceased person, here are the steps you should take to resolve this:

### Step-by-Step Guide to Handle Refund Cheque Issued in Deceased Person's Name:

#### 1. Obtain Legal Heir Certificate:

Since the refund cheque is issued in the name of the deceased person, you need to establish your legal authority to handle the deceased person's financial matters. This involves obtaining a Legal Heir Certificate from the local authorities.

- **Legal Heir Certificate**: Obtain this certificate from the local revenue department or municipal corporation. It proves that you are legally authorized to manage the affairs of the deceased person.

#### 2. Endorse the Cheque:

Once you have the Legal Heir Certificate, you need to endorse the refund cheque.

- **Endorsement**: On the back of the cheque, write "Payee's Account Only" or "Account Payee Only" followed by your signature. This endorsement ensures that the cheque can only be deposited into the account of the legal heirs.

#### 3. Open Estate Account:

If you don't have a specific bank account in the name of the deceased person's estate, you will need to open one. This account should be titled something like "Estate of [Deceased Person's Name]".

- **Bank Account**: Visit a bank where you want to open the estate account. Bring the Legal Heir Certificate, death certificate of the deceased person, and any other required documents as per the bank's policy.

#### 4. Deposit the Cheque:

Take the endorsed cheque along with the Legal Heir Certificate and other documents to the bank where you have opened the estate account.

- **Submission**: Submit the cheque and documents to the bank officer. They will verify the documents and the endorsement on the cheque.

#### 5. Processing by Bank:

The bank will process the cheque based on their procedures for handling estates of deceased persons.

- **Verification**: The bank may require additional documentation or verification steps before crediting the funds to the estate account.

#### 6. Clearance of Funds:

Once the bank completes their verification process, the funds from the cheque will be credited to the estate account.

#### Important Points to Consider:

- **Tax Implications**: Consult a tax advisor to understand any tax implications on the refund amount received.
- **Timely Action**: It's crucial to initiate this process promptly to avoid any issues with the validity of the cheque.

By following these steps and ensuring all necessary documentation is provided, you should be able to successfully deposit and clear the cheque issued by the Income Tax department in the name of the deceased person. If you encounter any specific requirements or challenges during this process, seek assistance from the bank and consult with legal or financial experts for tailored guidance.

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