Filing income tax for my deceased father. Requesting clarification on clubbing income and TDS.

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This discussion addresses how to file income tax for a deceased father, specifically for FY 2022. The user is seeking guidance on clubbing the father's fixed deposit interest and dividend income, along with the associated TDS, into the mother's tax return. Clarification is also sought on whether it's advisable to file a nil-income return for the deceased father solely to claim TDS refunds.

Vishal S

Vishal S (Querist)
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09 March 2023 Dear Sirs,

My father died last financial year 2021 . For financial year 2021 i registered my mother as legal heir and filed my fathers income tax return under his PAN.

My question is how to file return for FY 2022 . My father has received fixed deposit interest and dividend into his savings account , under his PAN for FY 2022 . TDS has also been deducted for the same .

Can i just add my fathers income to my mothers income and file under my mother's PAN ?

Can i enter the TDS deducted under my Father's PAN into mothers IT return . if that is not possible how can i show the TDS deducted in my mothers return so that total tax to be paid is less. I read another post here where advice was given to file father's return with no income but with TDS entered in order to get refund , is that advisable ?

Thanks in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 March 2023 As such bank should be inform about the demise of the person, and the FD should be transferred to joint holder/s or nominee. Bank should be requested to transfer the TDS in favor of the joint holder or nominee. Any income earned/accrued after the demise of the person is liable to be assessed in the file of legal heir/s.

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Vishal S

Vishal S (Querist)
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09 March 2023 ok , thank you.

Bank was notified and accounts are now closed but that took some time.

Is it mandatory to transfer all TDS to nominee PAN. reason i am asking is my sister who was a nominee for FD (closed now) is not in state and the TDS amount is small .

There are three legal heirs and my mother is registered as the legal heir on income tax website. Can i add all of my fathers income to my mothers and file return without reporting the TDS ?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 March 2023 Yes, declare the FD interest income under your mother's PAN..
You can make settlement between the legal heirs to provide the total bank balance (of your father) to your mother.

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