Income tax refund after death: What legal heirs need to do to claim a deceased taxpayer's refund

The income tax department has specifically explained what a legal heir needs to do in such cases. It says: “In case the above mentioned PAN pertains to a deceased taxpayer, please ensure the legal heir's PAN is linked with Aadhaar and later raise a refund reissue request for this deceased taxpayer's refund through legal heir's login.”

In simple terms, the legal heir needs to make sure their own PAN is linked with Aadhaar and then raise a refund reissue request through their legal-heir login to receive the deceased taxpayer’s refund.

What happens if a refund is due after the taxpayer’s death?

A refund due to a deceased taxpayer can be claimed or received by the person's legal representative.

“This is specifically provided for under the refund provisions of the Income-tax law. The legal heir should first be registered on the income-tax e-filing portal as the legal heir/representative of the deceased taxpayer,” said Abhishek Soni, CEO and Co-founder, Tax2win.

The tax department requires documents such as the deceased person's PAN, death certificate and proof of legal heirship for this registration.

Who can claim the refund?

The registered legal representative or legal heir can claim or receive the refund on behalf of the deceased taxpayer.

“Importantly, it is not simply a matter of any family member claiming the refund. The person needs to establish that they are legally entitled to represent the deceased’s estate and register themselves on the e-filing portal accordingly,” said CA Abhishek Soni.

How to request reissue of the refund?

Once the legal heir is registered, the refund reissue request can be submitted online.

• Log in to the Income Tax e-filing portal using the registered legal heir's credentials.

• Go to Services and select Refund Reissue.

• Enter the PAN of the deceased taxpayer.

• Select and verify the relevant Assessment Year.

• Select a validated or pre-validated bank account where the refund should be credited.

• Submit the request using e-Verification or DSC, as applicable.

“If a refund has failed for a deceased taxpayer, the legal heir can initiate the refund reissue request through their own legal-heir login. The legal heir's PAN needs to be operative, including Aadhaar linkage where applicable,” added Soni.

What happens to the deceased taxpayer’s tax obligations?

After the taxpayer's death, the legal heir or legal representative steps in to handle the deceased person's tax matters, including filing the return where required, claiming eligible refunds and dealing with outstanding tax dues.

What does Section 302 of the Income Tax Act, 2025 say?

Under Section 302 of the Income-tax Act, 2025, the legal representative is responsible for fulfilling the tax obligations of the deceased.

The provision states: “Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased.”

The law further clarifies: “The legal representative of the deceased shall be deemed to be an assessee for this Act.”

A pending income-tax refund does not vanish because the taxpayer has died.