Under Indian tax law, a person's obligation to file and pay taxes does not end with death. According to reports from Mint, the responsibility passes to their legal representative or legal heirs, and overlooking this obligation can lead to notices, penalties and delays in settling financial affairs. The legal representative must complete all tax obligations, including filing the ITR and paying any outstanding dues, as outlined in Section 302 of the Income Tax Act, 2025. Recent guidance from tax experts suggests that for AY 2026-27, taxpayers should wait until June 15th before filing returns to ensure accurate information from Form 16 and Annual Information Statement (AIS) updates.
As reported by Mint, the legal representative can be a spouse, adult child or parent if the person died intestate, meaning without a Will. When there is a will, the executor of the will can file the ITR and pay any due taxes from the estate before it is distributed among heirs. For minor children, the responsibility falls on their natural or legal guardian, as explained by Suresh Surana, Chartered Accountant and founder of RSM India. "The minor children themselves cannot independently discharge such tax compliances. In such situations, the natural or legal guardian of the minor child may act on behalf of the minor heir," Surana stated. Recent expert advice emphasizes that taxpayers with diverse income sources including FD, mutual funds, equities, property sale, pension, and house rent should wait until AIS updates are complete, while those with simpler income like pension and FD interest can file earlier.
According to Mint reports, the legal representative cannot simply log into the deceased's e-filing account on the tax portal. Akhil Chandna, Partner & Global People Solutions Leader at Grant Thornton Bharat, explained that the representative needs to log into their own account on the Income Tax e-filing portal and go to the 'Authorised Partners' section. From there, they can select the option to register as a representative assessee and submit supporting documents, including the PAN of the deceased, the death certificate and proof of legal heir status. Once the tax department verifies and approves the request, the legal representative can access the deceased's account through their own login credentials. Recent guidance from tax experts notes that companies and banks typically file their annual specified financial statement (SFT) return by May 31st, and this data is used to auto populate information in the AIS, making it crucial to wait for these updates before filing.
As reported by Mint, all penalties applicable to regular taxpayers apply to legal representatives, including interest on delayed filing or tax payment, late filing fees and penalties. Chandna noted that the consequences are not limited to non-filing of ITR but will also apply if the representative defaults on any tax payment on the deceased assessee's behalf. Interest under Sections 234B and 234C could apply when advance tax is underpaid, with both accruing at 1% per month on the shortfall. "The liability to pay such tax and interest would devolve upon the legal representative or legal heirs, limited to the value of the estate inherited from the deceased," Surana explained. Recent expert advice emphasizes that waiting until AIS updates are complete can help avoid discrepancies that could lead to income tax notices from the Income Tax Department.
According to Mint reports, the tax return should cover all income earned by the deceased from the start of the financial year up to the date of death, including salary, pension, rent, interest, dividends and other income. Income that continues to accrue after death, such as rent or interest, is handled separately. If the deceased left a will, the executor files returns on that ongoing income until the estate is distributed. If there was no will, the assets are divided under applicable succession law and the heirs report the income under their own PANs thereafter. The process requires advance planning, as identifying who will act as legal representative early, gathering necessary documents and completing portal registration before the filing season begins can prevent most complications. For AY 2026-27, students, pensioners, salaried, and others who are not required to conduct a tax audit must submit their ITR on or before July 31, 2026, while the deadline for Tax Year 2026-2027 is July 31, 2027.
