FILING OF INCOME TAX RETURNS

[DR.MARIAPPAN GOVINDARAJAN]

My client is the wife of deceased bank Manager who expired during November 2019. She received the death benefits of her husband to the tune of Re.1 crore. She did not file any return. The Department issued notice during March 2024 showing her fixed deposits in the bank and the said amount has escaped assessment. She filed reply through her auditor attaching the death certificate of her husband, the certificate of employer's showing the details of death benefits which are almost exempted. It was requested on the basis of the documents to withdraw the notice. When this matter comes to me I arranged to file the income tax return for the AY 2025-26. But the income tax return for the previous years could not be filed. What is the remedy in this case?

AI Summary

Widow Faces Tax Reassessment for Unreported Death Benefits; Advised to File Returns Under Section 148 and ITR-U. A client, the widow of a deceased bank manager, received death benefits of 1 crore rupees after her husband's passing in November 2019 but did not file an income tax return. In March 2024, she received a notice from the tax department for unassessed fixed deposits. Her auditor responded with documentation proving the benefits were mostly exempt. A tax return for the assessment year 2025-26 was filed, but previous years' returns were not. It was suggested to file a return under section 148 for reassessment and use ITR-U under section 139(8A) for earlier years if there is tax liability.