Is the legal heir liable for income tax?

A legal heir is liable to pay the deceased’s income tax dues from the inherited estate, not personal funds.

Do legal heirs have to pay debt if the borrower dies?

Legal heirs must pay the borrower’s debt only if they inherit assets from the deceased.

What happens to tax liability after death?

After death, tax liability transfers to the legal heir for the period before death.

Are legal heirs liable for GST?

Legal heirs are liable to file and pay GST dues if the deceased was registered under GST.

What is the proof of legal heir for income tax?

Legal heir proof includes death certificate, legal heir certificate, and ID proof of the claimant.

Does the heir have the primary obligation to pay estate taxes?

Heirs have the duty to pay estate taxes from inherited property, not from their personal income.

Who is not liable to pay income tax?

Individuals earning below the exemption limit or having exempt income are not liable for tax.

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Are Legal Heirs Responsible For Paying The Deceased’s Tax Dues?

Komal Bajpai

Author

Updated: 18-10-2025 at 5:30 AM

Losing a loved one is hard, and handling their belongings and taxes can add to the stress. Knowing what to do will make things a lot easier. Whether the deceased person left a will or not will also affect the process significantly. Let’s understand what exactly to do during this tough time.

Overview

Before managing a deceased person’s assets or deceased’s tax dues in India, it’s important to understand the legal and tax responsibilities that come with inheritance. The table below highlights the key aspects of the inheritance and legal heir tax process in India.

Particulars	Details
Law Governing Inheritance	Section 159 of the Income Tax Act, 1961
Meaning of Inheritance	Assets, property, and liabilities left behind by the deceased
Tax Responsibility	Managed by the legal representative using the deceased’s estate
Legal Heir’s Role	To represent the deceased in tax matters and manage asset distribution
Tax Filing Requirement	File ITR from 1st April to the date of death
Key Certificate Required	Income Tax Clearance Certificate (ITCC) or No Objection Certificate (NOC)
Governing Body	Income Tax Department of India
Banking Rules Reference	RBI’s Banking Companies (Nomination) Rules, 1985
Support for Heirs	Legal and tax advisors can assist in compliance and filing

Also Read: Understanding Gratuity Forfeiture: Legal Boundaries and Employee Rights

Understanding What Inheritance Is In India?

Inheritance means the assets, properties, and liabilities a person leaves behind after death. The deceased's obligations and deceased’s tax dues in India are also included in the inheritance.

Under Section 159 of the Income Tax Act, 1961, when a person dies, the people managing their estate must take care of any income tax return in case of death of assessee pdf and other pending tax matters. These representatives must file tax returns and pay any taxes from the deceased’s estate before distributing the remaining assets to the heirs. This ensures that the deceased’s tax dues in India are properly settled by their legal representatives.

Is The Legal Heir Responsible To Pay The Dues?

Many believe that the legal heir must pay all the deceased’s tax dues in India, but that’s not true. The legal heir isn’t required to pay the income tax dues from their own pocket. They are only responsible up to the value of the deceased’s estate.

The taxability of amount received on death of father or any family member depends on the nature of the assets or funds received. The heir doesn’t have to pay for the deceased’s debts from personal money; such dues are first settled from the deceased’s estate.

As per RBI’s Banking Companies (Nomination) Rules, 1985, banks must handle claims for the deceased’s accounts, deposits, and lockers carefully. The BCC Code also states that banks can only share account details when:

If bankers have to provide information by law.
If clients ask to reveal all information.
If there’s a duty towards the public to reveal information to prevent fraud.
If the banks have the client's permission in writing.

Tax Filing Requirements Of A Deceased Person

Is it necessary to file ITR of a deceased person? — Yes. The deceased person’s ITR must be filed from April 1 to the date of death. The legal representative must handle this filing and pay taxes using the deceased’s estate.

After completing the filing, it’s necessary to get an Income Tax Clearance Certificate (ITCC) or No Objection Certificate (NOC) from the Income Tax Department. These documents confirm that all deceased’s tax dues in India are cleared before distributing the estate.

If you’re unsure about tax amounts, you can use an online deceased’s tax dues calculator to estimate pending dues accurately. Legal heirs can also seek help from tax experts to ensure compliance and optimise the income tax death benefits India available to the family.

Also Read: When Can A Daughter Not Claim Her Father's Property?

How To Register As A Legal Heir?

Knowing how to inform the Income Tax Department about death of assessee online is important to begin the tax settlement process.

Step 1: Visit e-Filing.

Step 2: Log in using user ID and password.

Step 3: Go to ‘Authorised Partners’ and select ‘Register as representative assessee’.

Step 4: Click on ‘Let’s get started’.

Step 5: Create a new request.

Step 6: Select the ‘Category of assessee’ you want to represent.

Step 7: Enter the required details of the deceased person.

Step 8: Verify using OTP.

Step 9: The request to be a legal heir will be submitted.

Step 10: To view the status, click on ‘View Request’.

Documents Required For A Legal Heir

Before registration, keep these documents ready. They act as proof and support your copy of legal heir proof as per the norms Income Tax requirement:

Document Type	Purpose
Death Certificate of the Deceased	Proof of death issued by the municipal authority or hospital
PAN Card of the Deceased	For linking tax records and ITR details
PAN Card of Legal Heir	To identify the representative filing the return
Legal Heir Certificate / Succession Certificate	Proof of relationship and legal entitlement to represent the deceased
Will Copy or Notarised Affidavit	Confirms the heir’s right if a formal certificate isn’t available
Letter of Indemnity (if required)	Ensures the legal heir takes responsibility for correct representation
Address Proof of Legal Heir	Verification of residence (Aadhaar, passport, etc.)

Conclusion

The duty of managing deceased’s tax dues in India lies with the legal representative, not the heir personally. The taxability of amount received on death of father or any other family member depends on the case, and all taxes are cleared from the deceased’s estate. The legal heir does not have to pay any dues from their money, it will be deducted from the deceased person’s funds.

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