Ans: If a person dies, the legal heir has to file tax returns on behalf of the deceased, to report the income earned by the deceased until the date of his death, and taxes deducted thereon. Legal heir has to register himself at the income tax website for filing the return on behalf of deceased. This is mandatory for e-filing of return on behalf of the deceased person.
The PAN of both the deceased person and legal heir should be registered in the e-filing portal. However, if the deceased person’s PAN is not registered, then the legal heir can register on behalf of the deceased.
Once the request for registration as legal heir is approved, then the person can file return as legal heir on behalf of deceased.
Any income earned after the date of death from the assets inherited from the deceased is taxable in the hands of the legal heir. Legal heir should include this income inherited from the deceased in his own income while filing own income tax return.
Once the return is filed and all tax dues are paid, you can make a written application to the relevant AO (assessing officer) for cancellation of PAN.
The Pan number, date of birth, date of death, etc should be provided. Post submission an acknowledgment is given. The IT department will scrutinise the application. Once found in order, the PAN will be cancelled.
