Using 'add-on / authorised user' credit cards

Avneet Kohli (Querist) 01 September 2014 This query is : Resolved
Hi,
My father gave my mother Add-on credit cards, that she was using as an 'Authorised User'. But two years back my father suffered a massive heart attack and passed away, leaving a huge debt of Rs 4lakhs on the card, which my mother took over and slowly slowly paid back. Thereafter my mother would use her card, making & Paying fr all her purchases. Not using my fathers card ever.

But suddenly yesterday, she rcvd an income tax notice addressed to my father, questioning the credit card transactions, since there were no returns filed on his name, because of his sudden demice.

Now what should my mother do, as is she is a retired house wife with no source of income whatsoever, living on her savings, acumulated over a lifetime.

Now what should she do, to resolve this matter as soon as possibe?

Thanks for all your help an advise in advance.

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Kumar Doab (Expert) 01 September 2014
1. Reply to the notice and state that assessee has deceased.

2. Any of the legal heir/successors can file ITR of deceased. It is customary that eldest child files it, however it is not mandatory.

3. You or anyone may appear with reply (preferably drafted by your lawyer) to ITO and obtain acknowledgment of reply from window under proper seal and signature with date (that every ITO gives) and thereafter explain to ITO that the father has deceased and you are not aware of anything. It is possible that ITO or any senior official may close/dump the matter.

It shall be appropriate to show the notice to your IT lawyer and proceed his/her expert advice.