It return in death

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Dhruv Gaglani (Querist)
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29 February 2012 Dear All,

In case of death, two returns are to be filed
1. from 1st April to dt. of death; and
2. from dt. of death to 31st March.

However my question is whether the basic exemption limit is available for both the assessments or only in one assessment?

Krishna Mohan

Krishna Mohan (Expert)
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29 February 2012 Only one basic exemption. The income pertains to same person. However, as he died, some legal representative shall file the return. There is not bifurcation between the income earned till DOD and earned after death.

Dhruv Gaglani

Dhruv Gaglani (Querist)
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01 March 2012 Thank you Sir. Just for my satisfaction I understand that only one return has to be filed in the year death. However the return will be filed by the legal heir / representative.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 In the event of a taxpayer’s death, the income tax return (ITR) process involves filing returns for the period before and after the death. Here's how the basic exemption limit and return filing work in such situations:

### Filing Returns After Death

1. **Returns to be Filed:**
- **Before Death:** File a return for the period from April 1st of the relevant financial year up to the date of death.
- **After Death:** File a return for the period from the date of death to March 31st of the financial year.

2. **Basic Exemption Limit:**
- **Applies to Both Periods:** The basic exemption limit is available for both parts of the assessment year. Each period will be considered separately for the purpose of applying the basic exemption limit.
- **Before Death:** For the period from April 1st to the date of death, the basic exemption limit for that portion of the year is applied.
- **After Death:** For the period from the date of death to March 31st, the basic exemption limit is also applied to the income earned during this period.

### Filing by Legal Heirs

- **Legal Heir or Representative:** The legal heir or representative of the deceased will file the income tax returns on behalf of the deceased. They need to ensure that both periods are covered in the returns.
- **Filing Process:** Use the appropriate ITR forms for the assessment year, considering the income earned in both periods.

### Example:

For the Financial Year (FY) 2022-23 (Assessment Year 2023-24):

1. **If the death occurred on October 1, 2022:**
- **Return 1:** For the period from April 1, 2022, to October 1, 2022.
- **Return 2:** For the period from October 1, 2022, to March 31, 2023.

2. **Basic Exemption Limit:**
- The basic exemption limit is applicable for the income earned in each period:
- **April 1, 2022, to October 1, 2022:** Apply the exemption limit to income for this period.
- **October 1, 2022, to March 31, 2023:** Apply the exemption limit to income for this period.

### Points to Note:

- **Income Splitting:** Ensure that the income is appropriately split between the two returns for each period.
- **Documentation:** Keep proper documentation and records of the income earned in each period, along with any expenses or deductions claimed.

### Summary

- **Both Returns:** You need to file returns for both periods (before and after the death).
- **Exemption Limit:** The basic exemption limit applies separately to each period.
- **Legal Heir:** The legal heir or representative will file the returns and must ensure accurate reporting of income and application of exemptions.

For specific guidance tailored to individual cases or complex situations, consulting with a tax professional or chartered accountant is recommended. They can assist in ensuring compliance with the tax regulations and proper filing of returns.