If a person passes away without leaving a will, the family faces several legal and financial questions. A primary concern is who will file the deceased's Income Tax Return (ITR) and what rights the nominee holds regarding bank or demat accounts. According to tax experts, in such a scenario, the nominee does not become the owner of the assets; instead, they act merely as a trustee on behalf of the legal heirs.

**When must the deceased's ITR be filed?**
Under income tax laws, if the deceased's income exceeded the prescribed basic exemption limit or met other specific criteria, the legal heir is required to file the ITR on their behalf. If the individual had opted for the new tax regime, the basic exemption limit is ₹4 lakh, whereas under the old tax regime, it varies based on age. Additionally, filing an ITR may be mandatory in certain cases even if income is below the threshold—such as spending over ₹1 lakh on electricity or more than ₹2 lakh on foreign travel.

**What happens in the absence of a will?**
If the deceased did not leave a will, their assets pass to the legal heirs in accordance with the applicable personal succession laws. In such a situation, a single ITR needs to be filed covering the period from April 1st up to the date of death. Subsequently, any income generated from the assets is considered taxable in the hands of the respective legal heirs.

**What is the difference between a nominee and a legal heir?**
Experts state that having a nominee's name on a bank or demat account merely simplifies the asset transfer process; it does not make the nominee the ultimate owner of the assets. Ultimate rights rest with the legal heirs, and the distribution of assets is carried out according to the relevant succession laws.

**Why is timely ITR filing important?**
Tax experts advise that if filing an ITR for the deceased is mandatory and is not done, it could lead to future tax notices, delays in receiving refunds, or other legal complications. Therefore, the family's legal heir should register themselves as a legal representative on the income tax portal in a timely manner and complete the necessary procedures.

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