ITR Filing 2026: Who Pays Income Tax After a Person’s Death?

ITR Filing 2026: Who Pays Income Tax After a Person’s Death?

The legal heir or legal representative is solely responsible for filing the Income Tax Return (ITR) and paying any outstanding income tax dues after a person's death. Under Section 159 of the Income Tax Act, 1961, the legal representative is legally deemed an assessee and must settle the deceased person’s accounts for the financial year in which the death occurred.

Navigating the financial obligations after losing a loved one is emotionally and practically challenging. This comprehensive guide clarifies exactly who is responsible for the deceased's taxes, how the liabilities are calculated, and how to complete the registration and filing process on the Income Tax e-Filing Portal.

1. Are Legal Heirs Personally Liable?

A common fear is whether a legal heir must pay the deceased person’s tax out of their own pocket.

  • Capped Liability: Your personal assets and savings are completely protected.
  • Estate Limitation: Your liability is strictly limited to the value of the inherited assets. For instance, if the deceased had a tax liability of ₹3 Lakh but left behind an estate or bank balance worth ₹1.5 Lakh, you are only liable to pay ₹1.5 Lakh to the Income Tax Department.
  • Crucial Caveat: If you distribute or sell the inherited property before clearing the outstanding tax dues, you can be held personally liable, up to the value of the assets you sold or transferred.

2. Split of Taxable Income: Before vs. After Death

When calculating tax dues, the financial year is split into two distinct periods:

Period Type of Income Who Files & Pays?
April 1st to Date of Death Salary, business income, investments accrued while alive. Legal Representative files ITR under the deceased’s name.
Date of Death to March 31st FD interest, rental income, or capital gains earned after passing. Legal Heirs declare this in their own personal ITR.

3. Documents Needed for Legal Heir Registration

Before filing the final return, you must register yourself as a Representative Assessee. You will need to gather and upload scanned copies of these essential documents:

  • Copy of the Death Certificate
  • PAN Card of the deceased individual
  • PAN Card of the legal heir
  • Legal Heir Certificate (e.g., a registered Will, family pension certificate, or surviving family member certificate issued by local authorities)

4. Step-by-Step Guide to Filing the Deceased's ITR

You cannot log directly into the deceased person's account. Instead, you must act through your own profile.

Step 1
Access Your Account
Log into your personal e-filing account using your own user ID and password.
Step 2
Navigate to Representative Services
Go to 'Authorised Partners' ➔ 'Register as representative assessee' and select "Let's Get Started".
Step 3
Initiate New Request
Click 'Create New Request' ➔ Select 'Deceased (legal heir)' under the category options.
Step 4
Upload Documentation
Provide the deceased's details and upload the Death Certificate, Deceased's PAN, and official Legal Heir Proof.
Step 5
Authenticate Submission
Authenticate the registration request via Aadhaar OTP. The Income Tax Department reviews and validates your submitted profile proof within 7 days.
Step 6
Switch Profile and File
Once approved, log back into your dashboard, switch your profile role to 'Deceased' inside your portal panel, and proceed to complete the regular filing process.

Once the Income Tax Department approves the registration, you can log in, switch your profile role, access the deceased's tax history, check Form 26AS/AIS, and file the tax return. You can also claim refunds, which will be credited directly to the legal heir's validated bank account.