Filing mother's income tax return as "legal heir" because of her death
Kapil Tiwari
(Querist) 27 March 2014
This query is : Resolved
Dear Sirs,
My mother expired a month ago and I have to file her Income Tax Return for FY 2013-14 (AY 2014-15). However, for filing the Return, I must be registered as a legal heir on the Income Tax Website.
To register as legal heir, the main document required is a "Legal Heir Certificate". I need a "Legal Heir Certificate" only for filing of Income Tax Return. Kindly guide me as to the easiest procedure to obtain this legal heir certificate in Mumbai.
Secondly, we are 4 children and the other 3 do not have any objection to my obtaining the said certificate.
Your guidance will be highly appreciated. Thanks.
R.V.RAO
(Expert) 28 March 2014
in THE FOLLOWING LCI THREAD ,THERE IS A SOLUTION. PL.TRY TO APPLY THE SOLUTION.
http://www.caclubindia.com/experts/legal-heir-certificate-in-mumbai-most-urgent-1370549.asp
IN THE ABOVE THREAD CA. SRI S.S. AGARWAL REPLIED THAT for filing IT return, no need for legal cert.
rather in the appropriate column ,you write your name and write legal heir of .....
the other alternative is succession cert. from court taking 6 months.
R.V.RAO
(Expert) 28 March 2014
the above said thread is in c.a club. not LCI club.
the diff. may pl. be noted.thanks.
ajay sethi
(Expert) 28 March 2014
well advised by Mr rao
Kapil Tiwari
(Querist) 28 March 2014
Thank you very much Sirs, Mr. Rao and Mr. Sethi! I am wondering if it is so simple why is the Income Tax website asking for a "legal heir" to be mentioned. Even the "e-filing helpline" of Income Tax department is insisting on (1) obtaining a legal heir certificate, (2) registering as legal heir on the e-filing website and only then filing the IT Return for my mother. Hence, I am worried. Kindly advise. They have advised that such a certificate can be obtained from the "tehsildar" or "mandal commission". Can you kindly advise what these government bodies are and where they can be located (I live in Malad, Mumbai-400064)? Thanks.
R.V.RAO
(Expert) 28 March 2014
sri tiwari ji ,
if you have already tried and failed in filing the return of income as advised by sri s. s. agarwal ji of c.a. club in the above referred c.a club thread,
pl. find below the LCI CLUB thread reply by sri p.Ravinder, where he suggested that there are 2 situations to obtain legal heir cert, the MRO(also called as tahsildar in some states) and court .
http://www.lawyersclubindia.com/forum/Legal-heir-certificate-76153.asp
There is no concept or procedure of legal heir certificate in succession Act. One has to file declaratory suit before the local court to declare them as legal heirs of the deceased which includes movable and immovable properties. After getting the decree this can be used for all purposes, Banks, chit funds, lic policies, gold loans, landed properties etc.
Apart from this there is a provision to obtain legal heir certificate from Mandal Revenue office (MRO). This certificate will be used only for the purpose of taking pensionary benefits etc. Not for other purpose. It will be specifically mentioned on the certificate to that extent.
(author of above reply sri Ravinder .p)
as a representative assessee also you can file the return.ask your auditor and statrt in right earnest.
R.V.RAO
(Expert) 28 March 2014
tax return filing options and timeline for you.
sri tiwariji,
you may be aware that in your mother case, the IT return needs to be filed by july 31 st of 2014 /sept 2014,depending on your mother's IT status.
you have time limit of 4 months/6 months from 1 st april 2014, for online filing option before due dates (either following sri s.s agarwal's suggestion above or sri p. ravinder's suggestion above).
if by that time , online filing is not done and also if legal heir cert.is also not obtained,you can file return of income by 31 st march 2015,(but no revised return can be filed in that case, but refund can be pursued)) without any penalty.
after Mar 2015, there is a discretionary penalty of Rs. 5000,and a belated return can be filed 2 years from end of the fin.year.
pl explore filing return of income as representative assessee.talk to your auditor/tax advocate.
T. Kalaiselvan, Advocate
(Expert) 28 March 2014
Expet Mr.R.V. ?Rao has given a very detailed explanation and valuable opinion in a very elaborate way, the author may follow the same. Noting more to add.
R.V.RAO
(Expert) 29 March 2014
Thanks.Thiru kalai selvan ji.
Rajendra K Goyal
(Expert) 29 March 2014
A few lines from Economic Times:
Filing tax returns in odd situations
Mahesh K Agarwal Jul 4, 2011,
Taxpayer dies before filing return
A legal representative can file the return on behalf of the deceased person. Where it is required to put the name of the assessee, write down 'late (name of deceased) through legal heir (name of person filing)'. The legal representative will also have to submit a copy of the death certificate and surrender the PAN card of the deceased.
Any refund due to the taxpayer will go into the dead person's account. But under Section 159, the legal representative of the taxpayer shall be liable to pay any sum which the deceased would have been liable to pay if he was alive. However, this recovery cannot be more than the amount inherited by the legal representative from the deceased taxpayer.
A dead person is entitled to all the deductions and exemptions for the entire year, but tax is levied only on the income earned till his death. On his death, the income from his assets and the tax liability is transferred to his legal heirs. So if an individual died on 30 June 2011, his legal representative will have to file on his behalf for the financial year 2010-11 as also for the income for three months of 2011-12 in the next assessment year. Taxpayer dies before filing return
A legal representative can file the return on behalf of the deceased person. Where it is required to put the name of the assessee, write down 'late (name of deceased) through legal heir (name of person filing)'. The legal representative will also have to submit a copy of the death certificate and surrender the PAN card of the deceased.
Any refund due to the taxpayer will go into the dead person's account. But under Section 159, the legal representative of the taxpayer shall be liable to pay any sum which the deceased would have been liable to pay if he was alive. However, this recovery cannot be more than the amount inherited by the legal representative from the deceased taxpayer.
A dead person is entitled to all the deductions and exemptions for the entire year, but tax is levied only on the income earned till his death. On his death, the income from his assets and the tax liability is transferred to his legal heirs. So if an individual died on 30 June 2011, his legal representative will have to file on his behalf for the financial year 2010-11 as also for the income for three months of 2011-12 in the next assessment year.
http://articles.economictimes.indiatimes.com/2011-07-04/news/29735947_1_online-filing-assessment-year-original-return
May also Refer the following thread:
http://www.goodreturns.in/personal-finance/taxes/2013/08/how-file-income-tax-return-a-deceased-person-195029.html
Guest
(Expert) 30 March 2014
Of course, your doubt is genuine. You cannot assume yourself as legal heir unless declared so legally to file the return on behalf of your mother. Suppose, for the time being, if other three descendants do not have any objection right now, but later at some point of time someopne raises dispute about your being not authorise, what would be your position to save yourself from the case of cheating or fraud with the other legal heirs as well as the IT department of the Government?
Still further, you have not stated about your father, whether still alive or not?
Kapil Tiwari
(Querist) 30 March 2014
Thank you, Sirs for sparing your valuable time for me!
Dear Mr. PS Dhingra, my father expired in 1998. We are the following children:
1) elder brother, doctor, 64 years old
2) elder sister, teacher, 62 years old
3) myself, in private sector service, 52 years old
4) younger sister, teacher, 48 years old
All four of us have a cordial relationship. Now, I have been looking after the financial matters, such as income tax return filing, for my late mother, for the last over a decade. My other 3 siblings, in fact, want me to register as legal heir (on the e-filing website) for my mother for filing the income tax return for AY 2014-15, which will be her last IT Return.
Hence, I need a "legal heir certificate" for the ONLY purpose of filing the IT Return, signing the income tax acknowledgement on her behalf, responding to future income tax queries for my mother (if any) and this is where my role will end. I also believe that a "notarised affidavit" can also help me. Kindly advise.
Guest
(Expert) 30 March 2014
Even then, law demands no objection on a legally valid document from all the heirs in favour of the proposed one as the legal heir for any specific purpose or for all the purposes, as the case may be.
Kapil Tiwari
(Querist) 30 March 2014
Dear Mr. Dhingra, Sir, thank you for your quick response.
Kindly advise which could be the easiest available "no objection" legally valid document from all the heirs for this specific purpose of dealing with income tax matters of my mother.
I must add that I am a resident of Mumbai.
Many thanks for simplifying my query as I am now able to express myself clearly.
Guest
(Expert) 31 March 2014
You are welcome. You may better contact some local lawyer for drafting of your application for legal heir certificate as well as affidavit of no objection from all of the other brothers/sisters to be attached with your application.
