Return of Deceased person

Dear Expert, plz suggest how can We file Income Tax Return of Deceased Person. plz advice
Replies (4)
Quick Summary
This discussion addresses how legal heirs can file an income tax return for a deceased individual. It clarifies that legal heirs step into the deceased's shoes for tax purposes, inheriting their eligibility for slabs, deductions, and rebates. The advice suggests that actions like purchasing ELSS for tax saving or claiming capital gains tax benefits (like Section 54) can be pursued by the legal heir on behalf of the deceased, referencing relevant court cases.

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Hello sir

According to section 159(3)

 

The legal heir shall be eligible for the income tax slab, deductions and rebate that the deceased would have been granted under Income tax for the entire year “.

Can you please tell me as my father expired on August 2022 he has pension income . So can I purchase 80 c ELSS now as legal heir on his behalf to save tax.

In case of 54EC bonds high court allowed it.

After the death of the assessee, legal heir enters into the shoes of the assessee for all taxation purpose. Legal representative cannot be differentiated from the assessee for this purpose. If the assessee were liable to pay capital gains tax, the benefit of section 54 which forms part of the scheme of taxation of capital gains then legal heir cannot be denied because the latter condition of section 54 was fulfilled by his legal representative. Refer Madras High Court in C.V. Ramanathan v. CIT [125 ITR 191] and Andhra Pradesh High Court  in Late Mir Gulam Ali Khan v. CIT [165 ITR 228],

Yes, it should be allowed.           

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