As a legal heir, a person have to file the return on behalf of the deceased for income till the date of death. The legal heir will be considered as assesses.
Calculate the income of the deceased from the start of the year till the date of death, and thereby the tax payable on it in the same manner as if the deceased is alive. Bank statements, investments and other relevant documents necessary for income tax calculation need to be referred.
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 his personal income tax return.
The legal heir is responsible for paying taxes liable, penalty on the Income tax return of the deceased. However, the liability of the legal heir is limited to the extent of the assets he inherited, are capable of meeting the liability.
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