Tax credit for the tds against my deceased mother's pan
This query is : Resolved
29 March 2015
1)My mother passed away in March 2014. The banks had deducted her tax at source.
I registered myself as a legal heir and filed the IT Return for AY 2014-15. Hence, for the TDS deducted by the banks against my mother's PAN, due credit was given since I had filed her IT Return (in her name) mentioning her PAN.
2)For AY 2015-16, I will be filing the IT Return in my name only, mentioning my PAN. But the transfer of funds from my mother's account to my account was not immediate. The transfers went on until June/July 2014. Hence, for the interest paid by the banks upto June/July 2014, TDS was deducted against the PAN of my deceased mother. It was only after June/July 2014 that the TDS has been deducted against my PAN.
3)Now when I file the IT Return for AY 2015-16, for the combined funds, I will have to do so mentioning my PAN. Hence, I will get credit for only that tax amount which was deducted against my PAN. My predicament is that for the Income received against my mother's PAN, in the current financial year (AY 2015-16), though I may have to add her income to my income, I will not get credit for the 10% TDS deducted against my mother's PAN. So I will end up paying tax twice.
Kindly advice what I should do. Thanks.
I registered myself as a legal heir and filed the IT Return for AY 2014-15. Hence, for the TDS deducted by the banks against my mother's PAN, due credit was given since I had filed her IT Return (in her name) mentioning her PAN.
2)For AY 2015-16, I will be filing the IT Return in my name only, mentioning my PAN. But the transfer of funds from my mother's account to my account was not immediate. The transfers went on until June/July 2014. Hence, for the interest paid by the banks upto June/July 2014, TDS was deducted against the PAN of my deceased mother. It was only after June/July 2014 that the TDS has been deducted against my PAN.
3)Now when I file the IT Return for AY 2015-16, for the combined funds, I will have to do so mentioning my PAN. Hence, I will get credit for only that tax amount which was deducted against my PAN. My predicament is that for the Income received against my mother's PAN, in the current financial year (AY 2015-16), though I may have to add her income to my income, I will not get credit for the 10% TDS deducted against my mother's PAN. So I will end up paying tax twice.
Kindly advice what I should do. Thanks.
30 March 2015
Mr. Tiwari,
Submit your Mother's return for AY 2015-16 as well in her PAN. Show income upto July14 in your mother's PAN and balance in your return. In that way you may get refund of TDS deducted upto July14
Submit your Mother's return for AY 2015-16 as well in her PAN. Show income upto July14 in your mother's PAN and balance in your return. In that way you may get refund of TDS deducted upto July14
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31 March 2015
Dear Bansal-ji, I had been informed that, as registered legal heir, I can file only one last IT Return in my mother's name. The next time, I have to add all the income to my income and file IT Return in my name (like a trustee/custodian). Kindly advise. Thanks.
31 March 2015
Section 159 of the Income Tax Act, 1961 deals with such situation. As per section 159:
The legal representative of the deceased has to file the income tax return for the income on which the deceased. The income earned in the year of death is classified in two categories:
Income earned from April 1 till the date of death
Income earned thereafter till the end of the financial year.
Usually, spouse or close relative of the deceased takes charge as the legal representative. Else, in case of will of the taxpayer who has passed away, the executor is held responsible. The legal representatives will have to file returns in the deceased’s name for income earned till the date of death. Subsequent earnings are to be taxed in the hands of the legal representative/executor of the deceased’s estate. So if an individual died on 12 June 2014, his legal representative will have to file on his behalf for the financial year 2013-14 as also for the income for three months of 2014-15 in the next assessment year. The only difference in filing return one self and by legal assessee is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Process of tax calculation, filing returns remains the same. How to get the information, making senses of information to file the returns like Bank accounts statements, Form 16, well that’s a battle or war that you would have to fight.
Example : Kirit inherits a fixed deposit (FD) of Rs. 10,00,000. Shruti inherits an apartment from her father which was rented out. Interest received from the FD and rent received from the apartment before the death would be taxed as income of the deceased. The interest received from the FD and rent received from the apartment after the death would be taxed in the hands of Kirit and Shruti respectively. Our article On Inheriting,Tax of Property,Mutual Funds,Shares,FD etc explains about inheritance in detail.
There is no limit on the number of times the return should filed. You may continue with filing of return in your mother's PAN for this AY last
The legal representative of the deceased has to file the income tax return for the income on which the deceased. The income earned in the year of death is classified in two categories:
Income earned from April 1 till the date of death
Income earned thereafter till the end of the financial year.
Usually, spouse or close relative of the deceased takes charge as the legal representative. Else, in case of will of the taxpayer who has passed away, the executor is held responsible. The legal representatives will have to file returns in the deceased’s name for income earned till the date of death. Subsequent earnings are to be taxed in the hands of the legal representative/executor of the deceased’s estate. So if an individual died on 12 June 2014, his legal representative will have to file on his behalf for the financial year 2013-14 as also for the income for three months of 2014-15 in the next assessment year. The only difference in filing return one self and by legal assessee is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Process of tax calculation, filing returns remains the same. How to get the information, making senses of information to file the returns like Bank accounts statements, Form 16, well that’s a battle or war that you would have to fight.
Example : Kirit inherits a fixed deposit (FD) of Rs. 10,00,000. Shruti inherits an apartment from her father which was rented out. Interest received from the FD and rent received from the apartment before the death would be taxed as income of the deceased. The interest received from the FD and rent received from the apartment after the death would be taxed in the hands of Kirit and Shruti respectively. Our article On Inheriting,Tax of Property,Mutual Funds,Shares,FD etc explains about inheritance in detail.
There is no limit on the number of times the return should filed. You may continue with filing of return in your mother's PAN for this AY last
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31 March 2015
Dear Bansalji, I hope you don't mind if I seek further clarification from you.
1) My mother expired in March 2014. That was Financial Year 2013-14. As her son, I registered myself as legal heir on the e-filing website and filed her return for the full financial year 2013-14 (A.Y. 2014-15).
2) From April 2014 to March 2015 (Financial Year 2014-15, A.Y. 2015-16), my mother was not alive. The bank Fixed Deposits were in the joint names of my mother and myself. Hence, like Kirit in above example, I inherited the money from the broken Fixed Deposits and, like Kirit, the interest received (after my mother's death) will be taxed in my name. Am I right?
3) While I must pay tax on the interest from April 2014 to March 2015, the fixed deposits continued to remain linked in my mother's PAN until June/July 2014 and TDS was deducted against my deceased mother's PAN. So, while the income from April 2014 onwards is mine, what about the tax deducted against my mother's PAN? Since I will be filing the IT Return for the full financial year 2014-15, AGAINST MY PAN, I will be liable to pay tax again on the same amount on which TDS was deducted AGAINST MY MOTHER"S PAN (for the period April 2014 to June/July 2014).
According to the examples given by you, I am not allowed to file an IT Return in my mother's name at all for Financial Year 2014-15.
I request you to kindly clarify/offer guidance. Thanks.
1) My mother expired in March 2014. That was Financial Year 2013-14. As her son, I registered myself as legal heir on the e-filing website and filed her return for the full financial year 2013-14 (A.Y. 2014-15).
2) From April 2014 to March 2015 (Financial Year 2014-15, A.Y. 2015-16), my mother was not alive. The bank Fixed Deposits were in the joint names of my mother and myself. Hence, like Kirit in above example, I inherited the money from the broken Fixed Deposits and, like Kirit, the interest received (after my mother's death) will be taxed in my name. Am I right?
3) While I must pay tax on the interest from April 2014 to March 2015, the fixed deposits continued to remain linked in my mother's PAN until June/July 2014 and TDS was deducted against my deceased mother's PAN. So, while the income from April 2014 onwards is mine, what about the tax deducted against my mother's PAN? Since I will be filing the IT Return for the full financial year 2014-15, AGAINST MY PAN, I will be liable to pay tax again on the same amount on which TDS was deducted AGAINST MY MOTHER"S PAN (for the period April 2014 to June/July 2014).
According to the examples given by you, I am not allowed to file an IT Return in my mother's name at all for Financial Year 2014-15.
I request you to kindly clarify/offer guidance. Thanks.
01 April 2015
I would suggest to
1)file return of your mother for the AY 15-16 with no income but TDS details in TDS schedule so to claim refund for the TDS deducted by bank in her PAN
2) Show total FD interest in your PAN and pay tax theron.
In that way you will get credit of the TDS deposited in your Mother's PAN.
For further clarification you may put a query on my email id
bmohit02@gmail.com
1)file return of your mother for the AY 15-16 with no income but TDS details in TDS schedule so to claim refund for the TDS deducted by bank in her PAN
2) Show total FD interest in your PAN and pay tax theron.
In that way you will get credit of the TDS deposited in your Mother's PAN.
For further clarification you may put a query on my email id
bmohit02@gmail.com
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02 April 2015
Thank you dear Bansalji. I am sending you an e-mail (on your email id bmohit02@gmail.com) for another small clarification. I am grateful to you for your patience as well as expert guidance.
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