Filing Income Tax Returns for Deceased Parents and Capital Gains

When a parent passes away, their income tax return needs to be filed by their legal heirs.

For income earned before death, use the parent's PAN and register as a representative.

For income after death, the estate needs its own PAN and return.

If the deceased only had pension income, ITR-1 (Sahaj) is used if the total income is under ₹50 lakh.

Family members who receive a family pension must report it as income and can deduct a portion.

If you sell investments and make a long-term capital gain (LTCG), you might not pay tax if it's under a certain amount, but you still have to file if your other income is high enough.