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Indemnity bond to file tax returns for deceased parent

19 October 2021

My father passed away in July 2020, and we had a legal heir certificate made certifying all family members as legal heirs of my father. Now, to file his tax returns (family pension), my mother needs to be made the legal heir - the new income tax portal asks for an indemnity bond in favour of my mother from all the other legal heirs. I cannot find a sample format anywhere, and the lawyers are also asking us to provide a format. Does anyone here have a format here for such an Indemnity Bond?

Regards

Vikram Chauhan

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5 Replies

Vikram Bansal (Accountant, Manager) (6 Points)
Replied 19 October 2021

It is important to note that all the income which is accrued or received from beginning of the financial year till the date of demise will be considered as the income of the deceased person. Further, tax on any income accrued or received from the assets that are inherited from the deceased will be borne by the legal heir himself. This would mean that after receiving the inheritance, any income accrued or received from the asset will be considered as the legal heir's own income.

Vikram Chauhan (5 Points)
Replied 19 October 2021

Thank you for the reply. Since we want to pay taxes on the income from assets from one legal heir only, while filing the return for the said legal heir, we have to provide an indemnity bond from the other legal heirs. I am unable to find a format of this indemnity bond. Any help in this will be most appreciated.