Regarding income Tax return after Death

who is the legal heir of your sister? That person needs to do all the compliance related to income-tax. Including filing legal heir certificate with the Income-tax department which automatically involves information of your sister's passing away. 

Happy to help in case you require more professional help on this.

https://www.incometax.gov.in/iec/foportal/help/RegisterasLegalHeirUserManual

She was not married. She made no will. Nomination money in bank accounts has directly gone to nominee as of now.

Nomination is not same as legal heir. You would need a legal heir certificate/ succession certificate from appropriate authority. The legal heir would register as representative assessee by filing her death certificate and legal heir certificate. Once registered, he can file her return upto the date of her death and can claim TDS too. Procedure for the same is already available at https://www.incometax.gov.in/iec/foportal/help/RegisterasLegalHeirUserManual, as already shared by @ rajesh.

Originally posted by : munish
	She was not married. She made no will. Nomination money in bank accounts has directly gone to nominee as of now.

The return can be file only through legal heir. Otherwise it's not good/right.

Even though I have shared the link, the fact is, if you are not a legal heir, then you won't be able to get a legal heir certificate showing your name. Then the application to register as legal heir on the link that I have provided above will be rejected by IT.

Yes. Her legal heir can file her return for the relevant year to claim a refund, even though her income was below the taxable threshold. Register as her legal representative on the Income Tax e-Filing portal and submit the return in that capacity; you may need documents such as the death certificate and proof of legal-heir status. A refund claim is subject to the applicable filing time limits and verification.

There is no general requirement to notify the department merely because a taxpayer has died or to file returns in later years when none are due. To request deactivation of her PAN, use the Income Tax Department’s e-filing grievance facility at incometax.gov.in or contact the jurisdictional Assessing Officer; there is no single confirmed email address for reporting every death. Include her PAN and death certificate, and keep proof of the request. The appropriate process may depend on whether any return, refund or other tax matter remains pending.

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