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TDS of deceased assessee.

This query is : Resolved 

My father expired in April'19. My mother registered as his legal heir on income tax e-filing site, and filed her own return for AY 2019-20, and also filed return for my late father. Both returns were processed by IT deptt.

My father had some bank FDs. Bank kept deducting TDS against his PAN, despite intimation given in writing.

For AY 2020-21, she again filed two returns :

a) One as legal heir of my father, showing income only up to the date of death. As income was below taxable limit, full TDS refund was claimed.
For example, form 26AS showed his interest income as Rs 1,70,000/- and TDS of Rs 17,000/-.
Return filed by her showed income from OS as Rs 3,000/-(up to date of death), and claimed refund of Rs 17,000/-

b) Second return was filed for herself, in which FD interest income after the date of death of my father was added to her own income.
For example, form 26AS showed her interest income as Rs 80,000/- and TDS of Rs 8,000/-
Return filed by her showed income from OS as Rs. 2,47,000/- (including interest earned on my father's PAN), and claimed refund of Rs 8000/-.

Return for my mother was processed, and due refund has been received.

However, notice u/s 139 (9) is received from CPC for return filed for my father, as income shown in 26AS is different from that filed in ITR.

On login to e-filing site, I get option either to agree, or to disagree to the notice.
Please advise how do I reply to notice 139 (9) ?

Agree and revise the return showing income of 1,70,000, then only return will be accepted and refund granted. It's computer processing.

Show full Income and claim full TDS as Refund. You can also reply to notice by disagreeing and then explaining them the things but this might take time and hence not advisable
what you have done is technically right since Income to be shown only till the date of death and remaining income to be shown in legal heir return.

Thank you Seetharaman sir & Goel sir for your responses.
However, my mother has already accounted this income in her IT return.
Will it not be incorrect to show same income in the name of my late father, when it was earned after his death ?

Further, if I disagree, and explain reason to CPC, will I get chance to revise the ITR later, if CPC does not agree with my explanation ?

Either show full income and claim full Refund or show partial income and claim proportionate refund in both the returns and explain it to the department when they send the notice or as advised by Seetharaman Sir revise both the returns with their own income and TDS claim.

Please call me at Nine 8 7 3 3 7 7 7 0 2, lets discuss this over a call.

Goel sir, thanks for your guidance.
I talked to IT helpline. They have asked to "disagree" to notice, & post my reason there.



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