ITR of deceased as regular if year end death

if a person passed away towards year end like march or feb, and the banks have given the interest till march end on his/her pan then should it be filed as regular itr or should e calculate ourself how much interest till that date and from that date the rest be added to legal heirs's pan? can someone plz guide.

Replies (2)
Quick Summary
When a person passes away near the end of the financial year, it's crucial to correctly report interest income. Interest earned by the deceased up to their date of death should be included in their final Income Tax Return (ITR). Any interest accrued after their passing is taxable for the legal heirs and should be reported in their respective ITRs. While banks might issue statements for the deceased's PAN, it's essential to accurately calculate and report the interest earned up to the date of death in the deceased's return.

When a person passes away towards the year-end, the interest earned on their bank accounts until the date of death should be reported in their final income tax return.

Here's how to handle it:

Reporting Interest Income - *Interest Till Date of Death*: Calculate the interest earned by the deceased until the date of death. This interest should be reported in the deceased person's final income tax return (ITR). -

 *Interest After Date of Death*: The interest earned after the date of death would be taxable in the hands of the legal heirs.

The bank might report the entire interest amount in the deceased person's PAN, but the legal heirs should report the interest earned after the date of death in their own ITRs. Filing ITR -

*Regular ITR for Deceased*: File a regular ITR for the deceased person, reporting the interest income till the date of death. Indicate the date of death in the ITR form. -

 *Legal Heirs' ITR*: The legal heirs should report the interest income earned after the date of death in their own ITRs, pro²portionate to their share in the estate.

Key Considerations - *PAN Details*: Ensure that the PAN details are correctly reported in the ITR forms, both for the deceased person and the legal heirs. -

 *Documentation*: Maintain proper documentation, including the death certificate, bank statements, and interest certificates, to support the interest income reported in the ITRs.  *Consult a Tax Professional*: Given the complexity of tax laws, it's advisable to consult a tax professional to ensure compliance with tax regulations and accurate reporting of interest income [1][2].

sir how to get the interest earned till the date of death? ill the bank provide that info? or we have to calculate it?

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