Moment guide · FY 2026-27

I am handling tax filings as the legal heir of a deceased taxpayer

Who files the ITR when a taxpayer passes away?

The legal representative files the deceased's final ITR for income up to the date of death, registering as the representative on the portal; income after death is the heir's. The heir's cost in inherited assets is the FMV at the date of death under section 49(1), and probate may be required in some states for immovable property.

The #1 trap

Filing everything in the heir's name — income earned up to the date of death belongs to the deceased's final return, filed by the legal representative, and only income after death is the heir's. Also, the heir's cost in inherited assets is the FMV at the date of death under section 49(1), and some states require probate to transfer immovable property.

Kavita, daughter handling her father's tax affairs after his passing

Kavita's father passes away in September 2025. He had salary arrears and bank interest accrued up to the date of death, so Kavita, as the legal representative, registers on the income-tax portal as the representative of the deceased and files his final ITR for AY 2026-27, reporting the income earned up to 30 September 2025, the date of death. The return uses his PAN and his filing history, and the same due dates and obligations apply. The father's bank fixed deposits continue to earn interest after his death, and that post-death interest belongs to the heirs in proportion to their inheritance — Kavita and her brother report their respective shares in their own returns. The father's flat, with a fair market value of ₹1,20,00,000 on the date of death, is inherited by the two children; when they sell it in 2027, the cost for capital gains is the FMV at the date of death under section 49(1), not the father's original purchase price, and the holding period runs from his acquisition. Because the flat is immovable property, the family checks the state's requirement — in Maharashtra, a probate or succession certificate is needed to transfer title. Kavita keeps the death certificate, the will or succession documents, the final return acknowledgement and the bank statements. The refund from the father's final return is payable to the estate, and the bank credits it to the estate account. A quick call with us dials in the final figure. Kavita also checks the portal's process for filing as a representative: the representative registers with the deceased's PAN, and the return is filed in the deceased's name with the representative's details, and the refund, if any, is credited to the estate account. If the deceased had not filed returns in earlier years, the representative should assess whether past returns are due, because the obligations do not end at death. The interest income that accrued in the deceased's name up to the date of death is reported in the final return, and the bank issues the interest certificate split by the date. If the estate earns income during the administration period before the assets are transferred, that income is the estate's income, taxed at the maximum marginal rate, until the assets vest in the heirs. A quick call with us dials in the final figure.