Refund status
This query is : Resolved
13 December 2013
Hi,
Pl resolve this.
A) Assessee expired (pensioner) by june 2013, spouse(family pensioner) has daughter and son.
B) FD in the name of assessee is earning interest and Tax deducted.
C) Maturity of FD is next year, closing now will earn interest loss.
Questions are,
1) How to get refund of tax deducted?
2) If return to filed as Legal heir, can it be filed by any of the heir?
3) Should the FD be closed r held till maturity?
4) Legal heir certificate is in local (state) language, can it be a ground for rejection by IT DEPT?
Pl resolve this.
A) Assessee expired (pensioner) by june 2013, spouse(family pensioner) has daughter and son.
B) FD in the name of assessee is earning interest and Tax deducted.
C) Maturity of FD is next year, closing now will earn interest loss.
Questions are,
1) How to get refund of tax deducted?
2) If return to filed as Legal heir, can it be filed by any of the heir?
3) Should the FD be closed r held till maturity?
4) Legal heir certificate is in local (state) language, can it be a ground for rejection by IT DEPT?
13 December 2013
legal heir can file return with death certificate and Legal heir certificate.
then legal heir get refund in his/ her name.
FD will be closed . so that you can file ITR of assesse.
and after that intt. income will taxable in hand of legal heir.
pension will taxable in hand of assesse and family income in hand of legal heir.
then legal heir get refund in his/ her name.
FD will be closed . so that you can file ITR of assesse.
and after that intt. income will taxable in hand of legal heir.
pension will taxable in hand of assesse and family income in hand of legal heir.
13 December 2013
a) Legal heir has to file return to seek refund.
b) Preferably by the spouse.
c) If nomination is in force, the nominee shall be entitled at any time before or after the maturity of the Deposit to encash the Deposit. For the aforesaid purpose, the nominee shall make an application to the Bank, supported by proof of death of the Deposit holder.
If there is no nomination in force at the time of his / her death, the Bank will pay the sum due to the deceased, to his / her legal heirs upon request.
d) Produce a true Hindi/English translation to avoid any controversy if called upon.
b) Preferably by the spouse.
c) If nomination is in force, the nominee shall be entitled at any time before or after the maturity of the Deposit to encash the Deposit. For the aforesaid purpose, the nominee shall make an application to the Bank, supported by proof of death of the Deposit holder.
If there is no nomination in force at the time of his / her death, the Bank will pay the sum due to the deceased, to his / her legal heirs upon request.
d) Produce a true Hindi/English translation to avoid any controversy if called upon.
13 December 2013
Thx for both replies sir,
1)FD has nomination on spouse, however matures on Nxt year end. Can that FD be continued till its maturity or it SHOULD be closed,(ie mandatory closure).
2)If continued till maturity, can legal heir get refund next year also, despite spouse being assessee?
1)FD has nomination on spouse, however matures on Nxt year end. Can that FD be continued till its maturity or it SHOULD be closed,(ie mandatory closure).
2)If continued till maturity, can legal heir get refund next year also, despite spouse being assessee?
20 July 2025
1) How to get refund of tax deducted on FD interest after the assessee’s death?
The nominee (spouse here) or legal heirs can claim refund of excess TDS by filing an Income Tax Return (ITR) on behalf of the deceased assessee.
The return should cover the income earned up to the date of death.
Form 16A (TDS certificate) can be obtained from the bank.
The refund claim can be filed in the name of the legal heir or representative assessee (more below).
2) If return is to be filed as Legal Heir, can it be filed by any of the heirs?
No, only the representative assessee can file the return.
Usually, the spouse (especially if nominee) acts as representative assessee for income of deceased.
If spouse is not available or unwilling, any legal heir can file, but must be appointed as the representative assessee with the Income Tax Department.
A declaration or legal heir certificate is typically submitted to establish this.
3) Should the FD be closed or held till maturity?
There is no mandatory rule to close the FD on the death of the holder.
Since the FD has a nomination in favor of spouse, the spouse can continue holding the FD till maturity.
Interest will continue to accrue, and tax will continue to be deducted on the interest earned after the death.
However, if the nominee wants to liquidate funds earlier, that is allowed too.
4) Legal heir certificate is in local (state) language. Can it cause rejection by IT department?
No, IT Department accepts legal heir certificate issued by competent authorities even if it is in the local language.
However, it’s better to provide a translated and notarized copy in English or Hindi along with the original to avoid any confusion.
This is usually a procedural formality and not a ground for outright rejection.
Additional queries:
a) FD nominated to spouse, matures next year — can it be continued or must be closed?
It can be continued till maturity as the spouse is the nominee and holder now.
b) If FD is continued, can legal heir get refund next year despite spouse being the assessee?
Since spouse is nominee and holder, the interest income after death will be taxable in spouse’s hands, and TDS refund (if any) will be claimed by spouse through their own ITR.
Refund claim for interest income before death (earned by deceased) will be claimed by legal heir/representative assessee in their return.
So two different returns:
Legal heir’s return for income up to date of death
Spouse’s return for income after death.
The nominee (spouse here) or legal heirs can claim refund of excess TDS by filing an Income Tax Return (ITR) on behalf of the deceased assessee.
The return should cover the income earned up to the date of death.
Form 16A (TDS certificate) can be obtained from the bank.
The refund claim can be filed in the name of the legal heir or representative assessee (more below).
2) If return is to be filed as Legal Heir, can it be filed by any of the heirs?
No, only the representative assessee can file the return.
Usually, the spouse (especially if nominee) acts as representative assessee for income of deceased.
If spouse is not available or unwilling, any legal heir can file, but must be appointed as the representative assessee with the Income Tax Department.
A declaration or legal heir certificate is typically submitted to establish this.
3) Should the FD be closed or held till maturity?
There is no mandatory rule to close the FD on the death of the holder.
Since the FD has a nomination in favor of spouse, the spouse can continue holding the FD till maturity.
Interest will continue to accrue, and tax will continue to be deducted on the interest earned after the death.
However, if the nominee wants to liquidate funds earlier, that is allowed too.
4) Legal heir certificate is in local (state) language. Can it cause rejection by IT department?
No, IT Department accepts legal heir certificate issued by competent authorities even if it is in the local language.
However, it’s better to provide a translated and notarized copy in English or Hindi along with the original to avoid any confusion.
This is usually a procedural formality and not a ground for outright rejection.
Additional queries:
a) FD nominated to spouse, matures next year — can it be continued or must be closed?
It can be continued till maturity as the spouse is the nominee and holder now.
b) If FD is continued, can legal heir get refund next year despite spouse being the assessee?
Since spouse is nominee and holder, the interest income after death will be taxable in spouse’s hands, and TDS refund (if any) will be claimed by spouse through their own ITR.
Refund claim for interest income before death (earned by deceased) will be claimed by legal heir/representative assessee in their return.
So two different returns:
Legal heir’s return for income up to date of death
Spouse’s return for income after death.
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