Consequence of failure to file deceased's ITR: Penalties, interest, jail

However, a legal heir's liability is capped at the value of the inherited estate

“The Sixth Sense” immortalised the phrase “I see dead people”. It appears even the tax authorities share this eerie ability. If an individual has taxable income, his income tax return (ITR) must be filed regardless of his demise.

Says Ankit Jain, partner at Ved Jain & Associates: “The representative or legal heir must file the return for the income earned by the deceased until the date of death if the income was taxable.”

Register as legal heir

First, one must first register as a legal heir on the Income Tax (I-T) e-Filing website. This involves submitting documents such as the death certificate and