Income Tax return for Inherited Property
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An inherited property is the one which is passed on or gifted to an individual by their forefathers. But if you think that as a legal heir you don’t have to include the asset while filling up Income Tax Return, then you are wrong. In India, it’s important to give every small detail about the assets you possess. Even after the death of a homeowner, the property which is passed on from him/her to legal heirs, these assets must be shown by the legal heir in his/her IT returns.

So, read this blog if you possess an inherited property and know the procedure to file Income Tax Return:

  • According to section 159 of the IT act, the legal representative of the property is liable to pay the tax that the original owner would have paid if he/she was alive.
  • Secondly, the heir must pay only as much of income tax as is his/her share in the assets given/gifted to him/her.
  • Thirdly, while filing the return, one must keep in mind that the returns have to be filed in two parts: (i) where the income of the deceased is calculated, (ii) wherein the legal heir starts earning from these assets after the death. Also one must remember that if the homeowner died in mid of the year, then the legal heir first have to file the IT return for the whole year after which he/she can file the return for the property as their own.

For example, if the assesse died in February 2017, the returns have to be filed on his behalf by the legal heir and pay the tax from April 2016 to February 2017. After this procedure, the legal heir can file his own returns because the income endured out of the property is their alone now.

Procedure to file Income Tax Return for inherited property:

  • Log on to
  • Go to the account of the deceased and add or register yourself as a ‘representative’. Under the ‘My Accounts’ Section, you can find this option.
  • For a ‘New Request’ you must register yourself as a ‘Legal Heir’.
  • Proceed further by filling out the details about the deceased such as his or her name, PAN, and date of death.
  • Keep a scanned copy of both the deceased and yours handy as well as a copy of the death certificate and the registered will, family pension certificate as well or a letter issued by the bank that could confirm whether you are the nominee. All these copies have to be uploaded in a zip file not exceeding one megabyte (1MB) in size.
  • After submitting all the details, a transaction ID and an acknowledgment would be generated.
  • Once verified, the legal heir would be able to use all the services on behalf of the deceased through his own e-filing account.
  • Thereafter, he/she must file the return on the deceased’s behalf. The legal heir would also have the option of choosing the PAN card of the deceased through a drop-down list.

Important: In the income-tax returns do prefix ‘Late’ in the deceased’s name.