ACTIONS
ON DEMISE OF A PENSIONER OR FAMILY PENSIONER
ACTIONS
TO BE TAKEN BY NOK ON DEMISE
OF
A PENSIONER OR FAMILY PENSIONER
1.
The
demise if a veteran (pensioner) is a most traumatic moment for his NOK.
No words can ameliorate the pain and suffering of the moment. However, the NOK
or the legal heir should realise the need to concentrate on the immediate
requirements to ensure the orderly transition without the veteran /
pensioner.
2.
The
actions which are required to be taken after the demise of the pensioner or
family pensioner can be immediate and then the subsequent. The immediate
actions relate primarily related to the death certificate and cremation whereas
the subsequent actions will be more official. The family friends generally come
forward to take on the immediate actions on themselves since the family would
be traumatized with the demise. A check list is placed at the end of this
document which can serve as a ready reckoner.
******************
IMMEDIATE ACTIONS
3.
Immediate Intimations. Where death is sudden, the
first requirement would be to convey the news to those near and dear ones whose
presence is required for the imminent functions. Assistance of close friends
and neighbors can be sought, if family members are not available. In case
required, Intimation should be given to ADLR Staff of the URC on which
dependent. In case the veteran had opted for "Organ Donation", or
should the family wish to donate any of the organs, the concerned agency should
also be informed at the earliest.
4. Deciding
Venue and Timing of Events. A difficult, but early decision would have to be
taken on the venue for the cremation and the subsequent remembrance / religious function.
A visit should be paid to the venue by an available well-wisher to ensure
necessary arrangement, including Religious functionary and required stores.
5. Intimation
of Details of Funeral. Once finalised, timings and venue of the Funeral need to
be conveyed to all those who were close to the deceased, or who are likely to attend
.In case the medium of publication of Obituary in the Newspaper is to be used, it
must be remembered that they usually have a dead line up to close of
working hours on the day prior to publication to accept the Obituary..
Preparation
for Disposal of the Body
The
Legal Aspects as under must be looked into to avoid any future issues
before the body is disposed as per religious beliefs.
a) Natural
Death. When death occurs naturally in a hospital or under
medical supervision, the attending physician will issue a death certificate.
Where death occurs naturally at home, legally no action is required to be
taken. However it is always advisable to have a doctor as witness to proclaim
the dearth of an individual.
b) Unnatural
Death. Any death arising under suspicious circumstances, or as a
result of a criminal offence is considered an unnatural death. Incase of
natural death an FIR is lodged either by, the relatives or a third party
involved. For example, a car accident becomes a police case. A Post mortem is
compulsory before disposal of the body if an FIR is filed and the death
has become a police case.
c) Post
Mortem. A post mortem is a privilege of the immediate
relatives. It can be.conducted, only if they consent
to it or if an FIR has been filed and the death has become a
medico legal case. in such cases relatives cannot deny the conduct of post
mortem.
d) Preservation
of the Body. In some cases, it may be desirous to delay the
disposal of the body to enable the arrival of some very near relatives.
Ideally, the body should be stored in the. Refrigerated Morgue of a hospital. A
problem could arise in this approach since , most hospitals do not entertain
requests to preserve bodies of those who have not expired in their hospitals.
However , in larger cities, there are charitable institutions
/ individuals who provide refrigerated caskets to tide over such
situations. Details in this regard can usually be ascertained from the
caretakers of the cremation ground.
e) Arrangements
for Hearse. Once the timings for disposal of the body have been
finalised, arrangements for a Hearse would have to be made. In most
cities, these are provided by the Red Cross, Municipal
Corporation or Charitable Institution. In larger military stations, a
Hearse might be available at the Military Hospital again, this information
would be readily available at the nearest cremation ground.
7. Actions
Linked to The Funeral . While entering particulars of the deceased
in the records of the Cremation / Funeral Venue, particular
care must be taken to ensure that the particulars,
especially spelling of the name are correct . Any discrepancy in
spelling of the name will result in great difficulty while obtaining death
certificate. After the funeral, a receipt is to be obtained from the in charge
of the funeral place, which shall provide the basis for further actions. In
case the name is recorded in the local vernacular, effort should be made to
also have the name written in English.
SUBSEQUENT
ACTIONS
8.
All actions hereafter will be linked to the Death
Certificate, which shall be accepted as proof of the demise of the veteran.
Death
Certificate
9.
Once the cremation/burial is done, death of the person has to be
registered by the relatives in the Office of Registrar of Death and Birth
available in every district. In villages, the same is to be registered with the
Panchayat. The Office shall cross check with the register where the cremation
or burial took place or in case of a medical death, with the Certificate
provided by the doctor treating the deceased, before death an there after issue
a Death Certificate. Some of .the bigger Military Hospitals are authorised to
accept applications on behalf of the Registrar ,of Death and Birth, in respect
of natural deaths which have occurred in the hospital.
10. At
least 20 ink signed copies of the Death Certificate should be applied for,
since there will be a requirement tor original copies in many places. The
charges for this are nominal. The procedure to obtain the death certificate and
the application for the same varies from state to state. In many places the
issue of the death certificate has been done on line from where it can be
downloaded.
Obtaining
a Probate of Will
11.
Sec 213 (1) of the Indian Succession Act, 1925 states that a Legatee's,
(a person who inherits under a Will) right to property bequeathed in a Will
cannot be established in a court, unless a court of competent jurisdiction has
granted a probate of the Will, under which the right is claimed by the
Legatee. In other words, probate is issued by a Court only when a person dies
"testate" i.e. having made a Will and it is the means to determine
judicially, the validity of that Will . It is granted by a District Judge. For
this, the Executor of the same must make an application to the District Judge.
The District Judge, in turn will send a copy of the application to the Judge in
whose jurisdiction the late Testator had fixed residence.
12.
In order to obtain Probate of Will, there are two legal requirements. Firstly,
to establish in the civil court of law, that the Will in question had been made
voluntarily and signed by the deceased Testator in the
presence of independent witnesses, and secondly, to ascertain that there was no
subsequent Will executed by the deceased. To establish the first requirement,
those who have signed as witnesses are required to appear in the civil
court and give evidence to authenticate the Will in question. Once this is
done, the court promulgates notice in Govt. Gazette and local newspapers,
"to whom it may concern", to produce before the court within
the given period, any Will, if held by any one, claiming to be made by the Testator.
When the Will in question is not contested by any other member of
the family, a Probate of Will is issued by the court.
13.
In- case witnesses to the Will have predeceased or are not traceable, then the
nominees have to obtain Succession Certificate for claiming the estate of the
deceased. If the Will is registered with the Registrar/Sub
Registrar, it obviates the requirement of presence of witnesses to appear
before the Magistrate to authenticate the Will and obtaining of probate
of Will is mad) easier.
14.
In case of a Will made by a Hindu, Sikh, Jain or Buddhists, probate is
mandatory tor immovable properties situated in West Bengal, Pondicherry,
Chennai and Mumbai. Probate is not necessary in other states of India especially
so if the will is a valid registered document. However, if the court has to
issue a decree against a debtor of the testator (Insurance Policy or a bank
deposit), probate of the Will then is essential. If no executer i s appointed
in the Will. the question of grant of probate
does not arise. Further, non-registration of a Will does not come in the
way of obtaining a probate.
15.
For obtaining a probate a petition has to be filed before the District
Court under sec 374 of the Indian Succession Act along with:
a) The
original Will. .
b) Title
deeds of immovable properties.
c) Documents
pertaining to movable properties. Obtaining of Succession Certificate
16.
In case person dies "intestate", i.e. without leaving a Will,
his legal heirs will have to apply to the court for grant of a
Succession Certificate under the provision of Sec 123 of th.e Indian Succession
Act. Succession in legal language means the order in which or the conditions
under which one person after another succeeds to property. Application for
grant of a Succession Certificate is made under Sec 372 of the Succession Act
in the form of a petition. This petition is to be filed before the District
Judge under whose jurisdiction either the ordinary residence of tile deceased
or the property of the deceased lie. Along with the following document:-
a) Death
Certificate
b) Documents
pertaining to the Property of the deceased
c) Name
of family members and close relatives
d) Debts
and securities to which the Succession Certificate pertains.
e) Right
of the petitioner in the property
17.
If there are more than one claimant, then a joint application is
filed by all heirs together.
18.
On receipt of the petition, the District Judge shall fix a day for the hearing
and issue notice of the application and of the day fixed for hearing. On the
day fixed for the hearing, the District Judge shall proceed to decide in a
summary manner the right to the grant of certificate. When the judge decides
that the right to the properties belong to the applicant, he shall make an
order tor the grant of certificate to the
person
PENSION
/ SERVICE ISSUES
19. Intimation
of Demise to Service HQ/ Offices. Intimation of demise would be required to be
sent to Integrated HQ of MOD (Army), Adjutant Generals Branch, (MP 5 (b)
Officer's Records), PS (4) and CW 8) and Corps Dte Gen (Coord Sec) , as well as
to the local Station HQ, Regional Centre ECHS, ECHS Polyclinic, Col of the
Regt, The Regimental Centre and Zila Sainik Board. Copy of a
letter which can be photocopied and despatched by Speed Post after filling in
relevant details, is appended at Appendix ‘K’. The Armed Forces Retired
Officers Identity Card of the deceased can be returned at this stage to the
local Station HQ for disposal and receipt or acknowledgement obtained which
must be preserved in the deceased’s file.
20. Claiming
of AGI F Extended Insurance Cover. A letter to claim Extended Insurance
Cover is placed at Appendix ‘L’.
21. Claiming
of AOBF Demise Grant. AOBF Demise Grant can be
claimed if Platinum Grant has not already been claimed on the Veterans
attaining 75 years of age. A letter addressed to AOBF for claiming the grant is
placed at Appendix M. ( Since discontinued )
23. Family
Pension. Where the endorsement for entitlement of Family Pension exists in
the PPO of the pensioner, the release of Family Pension will be carried out by
the Pension Disbursing Authority (i.e. the Pension Paying Bank). A letter is to
be addressed to the Manger of the Bank with intimation to PCDA (Pension) and
PCDA(O), Pune for information. A letter addressed towards this
requirement is placed at Appendix ‘N’). In case of the demise of Family
Pensioner in receipt of the Family Pension this letter for stopping the pension
to the bank is to be signed by the legal heir / nominee of the bank account.
23. Canteen
Card. At an appropriate time, action will be required to be taken to obtain a
new Canteen Card entitling the revised authorisation. This will be obtained by
filling up the relevant application form available in the URC to which the
veteran was attached in his lifetime.
24:
Widows Identity Card From Zila Sainik Board. In due course,
the identity Card issued to the late Veteran or the family pensioner is to be
returned to the Zila Sainik Board. In case of the Widow of the Veteran she can
then can apply for issue of a Widow's identity Card on the Form placed at
Appendix 0, along with three photographs and copies of PPO or the service book.
RESOLUTION
OF PERSONAL FI NANCIAL AND PROPERTY I SSUES
25.
The early resolution of financial issues should be a matter of priority for the
NOK. The RBI has tried to make the procedure as simple as possible, in respect
of bank held deposits and Bank Lockers provided the requisite nominations are
in place. The details can be accessed at the website http://www.rbi.org.in/scripts/BS_ViewMasCircuiculardetails.aspx?id=5830#a29 The
details are summarized in succeeding paragraphs.
NOTE
- Following Actions are equally Applicable for Pensioner as
well as Family Pensioner
BANK
DEPOSIT ACCOUNTS
26.
In case of deposit accounts (Bank
Accounts and Fixed Deposits), where the depositor has made a valid nomination,
or where the account is operated under "Either or Survivor'', or
"Anyone of Survivor" or "Former or Survivor'', or "Latter
or Survivor'' clause, the payment of the balance in the deposit account to the
survivor(s)/nominee of a deceased deposit accountholder represents a valid
discharge of the bank's liability provided:-
a) The
bank has exercised due care and caution in establishing the identity of the
survivor(s) J nominee and the fact of death of the account holder, through
appropriate documentary evidence; .
b) There
is no order from the competent court restraining the bank from making the
payment from the account of the deceased and
c) It
has been made clear to the survivor(s) I nominee that he would be receiving the
payment from the bank as a trustee of the legal heirs of the deceased
depositor, i.e., such payment to him shalI not affect the right or claim which
any person may have against the survivor(s) I nominee to whom the payment is
made.
27.
Since payment to the Survivor or Nominee, subject to the listed conditions
would constitute a full discharge of the bank's liability, insistence on
production of legal representation is superfluous. While making payments to
Survivors or Nominees, banks have been advised to desist from insisting on
production of succession certificates, letter of probate etc., or obtain
Indemnity Bonds or Sureties, irrespective of the amount standing to the credit
of the deceased account holder.
28.
Where nominations have not been filed or "Survivor: clause is not
incorporated, banks have been advised to adopt a simplified procedure for
repayment to legal heirs, keeping in view the imperative need to avoid
inconvenience and undue hardship to the heirs. However, in accordance with
their risk management systems, concerned banks may fix a threshold limit, for
the balance in the account, up to which claims can be settled without insisting
on any documentation other than a letter of indemnity. In actual practice
bank's set a very low limit to cover themselves and therefore, in this
eventuality, payment of the bulk of the account balance will be made only after
necessary succession formalities are completed.
Bank
Lockers
29.
With regard to providing access to Bank Lockers to NOK, The RBI has directed
banks to follow the same approach, mutas mutandi , as applicable to
Deposit Accounts .Where valid nominations are held or "Survivor"
clause has been incorporated in the mode of operation of the Locker, access to
Bank Lockers will be permitted without legal representation I indemnity bonds
etc. No inventory of contents will be prepared. The policy on the subject can
be accessed at RBI Site or can be checked with the Banks.
30.
However, where nomination has not been made, or "Survivor" clause has
not been incorporated, banks have been advised to adopt a customer friendly
approach, but ensure legal entitlement of the applicant . An inventory of the
articles held in their safe custody or in a Locker will be prepared before
returning the same. Thus, the procedure and the legal requirements would vary
from bank to bank.
PO
Accounts - MIS/ FD/RD / SB Ac
31.
The procedure for making claims for Post Office Savings Instruments is slightly
more complicated tho in the case of banks. The accounts of expired depositors
are to be settled on any of the following basis
a) Nomination.
b) Legal
evidence.
c) In
case of no nomination and without production of legal evidence, up to a balance
of Rs 1 lakh.
32.
The rules relevant to various types of accounts can be viewed at
the following links:-
a) SB
Ac. http://www.indiapost.gov.in/Pdf/Manuals/POSB_Manual_
Vol-1.pdf
b) MIS
Ac. http://www.indiapost.gov.in/POSBActs/POMISRules1987.pdf
c) RD
Ac. http://www.indiapost.gov.in/POSBActs/PORDRules1981.pdf
33. Claim
Procedure.
Claim will be made on the form prescribed for the relevant contingency at the
PO where the account is held. The financial powers of the Sub Post Masters is limited
to a maximum of Rs 5,000/- and thus, all claims will be forwarded to the Head
Post Office for approval.
34. Determination
of Account Balance. The balance in different types of accounts will
be determined as follows:-
(a)
SB A/c. Balance in the account at the time of death including the
interest for the year preceding the financial year of death.
{b)
RD A/c. Balance as per the Tables annexed to RD Rules.
(c)
TD / MIS A/c. Principal amount plus interest accrued and unclaimed
as on the date of death.
35. Application
Forms . The application forms for different contingencies can be
downloaded from the follow ing sites:-
(a)
On Basis of Nomination. Form at Appendix ‘P’. Download
available at
http://www.indiapost.gov.in/pdfForms/ClaimApplnforNomnhasbeenRegdwithPO.pdf
(b)
On Basis of Legal Evidence. Form at Appendix
'Q'.
Download available
at http://www.indiapost.gov.in/pdfForms/ClaimApplnwithLegalEvidence.pdf
(c)
Where No Nomination
or Legal
Evidence
Exists.
http://www.indiapost.gov.in/pdfforms/SB84ClaimApplnWhenNoNomnExists.pdf
NSC
36. Premature
Encashment. Premature encashment is permitted only on the death of the
holder. In case valid nomination is held or legal evidence is available,
application on relevant form is to be submitted. The interest applicable will
be as under:-
(a)
Less than one year
- Only face value.
(b)
One to three years Face value plus simple interest.
(c)
More than three years - See tables at the Post
Office.
(http://www.dhanvriddhi.com/finalsite/pdf/Nsc.pdf)
37. Application
Forms. The application forms for different contingencies can be
downloaded from the following sites:-
a) Nomination.
Application Form placed at Appendix P.
Can also be viewed at http://www.indiapost.gov.in/pdfForms/ClaimApplnforSCwhereNomnRegdwithPO.pdf
b) Legal
Evidence. Application Form placed at Appendix a. can
also be viewed at http://www.indiapost.gov.in/pdfForms/ClaimApplnforSCwhereClaimonlegalEvidence.pdf
Bank I PO Accounts
38.
PPF Accounts and Senior Citizens accounts may be held at Post Offices or
in Banks. However, their operations are controlled under common rules and regulations.
PPF
Accounts.
39.
On the death of a subscriber, the balance In the PPF account is paid on demand
to the nominee or successor. However, the balance, if not withdrawn, continues
to earn tax-free interest. No partial withdrawals are permitted. It is risky
for the nominee to continue the account because the nominee cannot
appoint a nominee.
40.
The application for such withdrawal is to be submitted on Form
'G'. A copy is placed at Appx 'R' and can also be downloaded from
:- http://www.indiapost.gov.in/pdfForms/PPFClaim.pdf
Senior Citizens Saving Account
41.
In case of death of the depositor before maturity, the account shall be closed
and the deposit refunded along with interest till the end of the month
preceding the month in which the refund .is made. Where the account is
held jointly with the spouse, it may be continued under the same terms and
conditions as the original account. However, If the spouse also has her own
Senior Citizens Account then the account of the deceased shall be
closed
42.
The request for closing of the account and release of the balance shall be
submitted on Form ‘F’. (See Appendix ‘S’
). The same , can also
be downloaded from http://www.indiapost.gov.in/pdfForms/FormforClaimSCSS.pdf
Life
Insurance Claims
43.
intimation of a Claim should be given to the Insurance Company at the earliest
feasible after demise of the policy holder along with the basic Information
like Policy Number, Name of the Insured, Date of Death cause of Death, Place of
Death, Name of Claimant, and Claimants relationship with the insured.
44. The Claim will be filed subsequently, after receipt of Death Certificate on the form provided by
the Insurance Company. There Is no time limit for filing the Claim, but
the earlier is always better. In case there is delay beyond 30 days of filing
the claim, or the claim is not passed to the satisfaction of the
Claimant, then a complaint mechanism exists to file a complaint with the
Insurance Regulatory and Development Authority (IRDA).
45. A detailed article on the
subject can be perused at http://insurance.birlasulife.com/LIUSPressNewsRelease/How-To-File-Claims-TheTribune- 250313.pdf
Credit
Cards
46.
The balance payments due on credit cards will increase exponentially after the due date for
payment The following actions must be taken in respect of all credit cards held by the deceased :-
a) Inform the "Hotlne" number of the issuing bank to block the card.
b) Make payment in full of the balance amount due on the credit card
c) Surrender the credit card to the issuing bank and close the account.
Transfer of I immovable Property
47.
The very first step in the right direction is to get hold of the testator's Will. This can be obtained by applying along with the deceased's death certificate to the District
Registrar.
48.
The registrar will open the sealed will in front of all the heirs and then hand over
a copy to each applicant. In case the deceased has nominated only a single heir then only one copy would be provided. In case there is no will then as per the Hindu Succession Act the
property will pass on to Class 1 heirs who include spouse, children and mother of the deceased. In case of ·absence of Class 1 heirs, it would pass on to the Class
2 heirs comprising of father, grandchildren and siblings.
If the deceased was a woman then the property is equally divided among the husband and children in case the woman has died intestate (without a proper will). In case of the heir being a minor or disabled, the property is transferred through a trust at a suitable point in future . In case of other religions, the respective Personal I Succession Laws will apply.
49.
Once the legal ownership of the property for that heir is confirmed, the next step is to apply for MUTATION of the house to local municipal authority.
It is essential to know that mutation only helps in updating the records of the government and in no way confirms ownership. However
it is an essential step in cementing your ownership on the house. In
order to apply for the mutation one needs to deposit all the relevant legal papers of the house, proof of inheritance through the will, death certificate of the deceased and land records of the said property.
50.
A no-objection certificate from the other heirs is also required in case of multiple heirs. Any challenge to this application for mutation will be referred to the sub divisional magistrate. However, the appeal for dispute must be within 30 days of the mutation order. In case of multiple legal heirs to
the property the mutation document would bear the names of all the heirs.
51.
Once these legal formalities are over then the heir is at liberty to either reside in
it or rent it out. He can even sell off the property as he is the sole owner of the house. In case of multiple heirs to the house,
it is advisable to mark the division of property among them right at the time of mutation to
avoid subsequent complications.
52. Legal assistance will invariably have to be taken to complete necessary formalities and thus further amplification is not made here. Suffice It to say that if there is a Will (especially a Registered Will) existent, then the procedure will be relatively smoother. However, if the deceased has passed away "intestate" , then the relevant Succession Laws will establish the transfer through Courts.
53,
An incisive article on transfer of immovable property can be read at the following website:- http://in.finance.yahoo.com/news/the-inheritance-of-house--things-you-must-know.html?page=all
54. Follow Up Actions.
No delay should be permitted after transfer of the immovable property in applying fo change of name of Electricity , Water and Piped Gas and Land Line Telephone connections. An often forgotten issue is of the Gas Connection. Change of name in this regard is a simple and permitted procedure, which assumes importance in light of the progressively increased direct transfer of subsidy into the connection holder's bank account. The procedure can be viewed at the website http://indane.co.in/transferconnection.php
Transfer of Movable Property
55.
Transfer of Ownership of a Car is regulated under the provisions of Para 50 of Mot9r Vehicle Act 1988. The relevant procedures vary marginally from state to state. The availability of a Probated Will simplifies the procedure, as otherwise, the RTO may insist upon affidavits from all the legal
heirs renouncing their claims. The documents which will be required for effecting transfer of the car to NOK on
succession are as under :-
a) Form 31 - Application for transfer of ownership in the name of the person
succeeding to the possession of the vehicle.
b) Original Registration Certificate
c) Original copy of the Death Certificate.
d) Probate or Affidavit from all legal heirs
relinquishing their right in favour of the applicant.
e) Valid Insurance.
f) Proof of address of the
applicant.
g) PAN Card of the applicant.
56.
In case the vehicle has been purchased with a loan, the process will be simplified,
if the lien of the bank ·s cancelled by paying up the balance amount of the loan.
57.
The process will be slightly more complicated, if the Car is registered in a station other than the one in which title NOK is residing. In such a case, the NOK will require a local proof of address. ·
58.
RTO staff everywhere, like all other government offices having public dealings, are known to
raise ; observations on the most minor of issues, which can lead to repeated trips to the RTO ,Office. lt will always be prudent to engage the 'services of a "Consultant/Agent' specialising in such issues
and usually available adjacent to the RTO office.
Disposal of NSP Weapon .
An early decision would have to be taken whether to retain the weapon as an "heirloom" or to dispose it off (or return it to COD, Jabalpur, if allotted from Army Ordnance). Once- decided, the procedure laid down at.Para
21 of Part 1 will need to be followed.
'Finalisi ng I ncome Tax I ssues ·:·
Eve·n on the demise- of any individual, the income tax issues cannot be deemed to have been automatically settled. There may be tax refunds due, or tax may be due to the government. You can.forget the former, but the government will not forget the latter,
hence it is a must that the legal heir should file the final return of the
deceased. There is a special post on filing the final return in this web
site which gives detailed procedure to file such income tax return on behalf of
the deceased Pensioner or the Family Pensioner.
o:p>
Please note that on death, the income from the assets of the deceased and his income tax liability is transferred to the Legal Heir. The deceased remains entitled to the deductions and exemptions for the entire year, but tax is levied only on the income earned till his death. Thus these issues have to be dealt with by
the Legal Heir. The different contingencies which may arise are enumerated in succeeding
paragraphs. ·
· Income of Deceased is
Nil In case the income of the deceased is Nil for the relevant financial year, then no IT Return is required to be filed. However, the Assessing Officer is to.: be: informed of the death and the fact that no return would be filed in the future and thus, the IT
file of the deceased be closed. it may be noted that in case a refund is due on account of TDS deducted or Advance Tax deposited, then a Return would have to be filed.
Deceased Had a Tax
Liability. The Income Tax Return of the deceased can only be filed by the Legal Heir, including all income up to the date of
death in the Return of the deceased. If any refunds are due, then they will be deposited in the dead assesses account under Sec 159 of the IT Act, but if any tax liability exists, it will have to be paid by the Legal Heir while filing the Return. When it comes to liability, the number of heirs seems to disappear. Therefore, it is worth
mentioning that no heir is personally liable to pay the Income Tax dues on behalf of the deceased. Any tax paid is done from the Estate of the deceased, prior to distribution. The liability V ill, therefore, be limited to a maximum of not more than the amount inherited, (the Estate),by the Legal Heir from the deceased tax payer.
Taxable Income. Some issues which require clarification are as under :-
a) Gratuity received by a widow or heir after death of an
employee , is non-taxable.
b) Family Pension is taxable in normal cases. However, Section 57 of the Income Tax Act permits a Standard Deduction of 1/3 of such Family Pension or Rs 15,000/- whichever is less.
(in addition to other deductions which are applicable to all tax payers}. The Family Pension in respect of Award Winners and those members of the Armed Forces who die in operations, is exempt from Income Tax.
c) Income received by the deceased after death, will be taxed on the heir who inherits the property from which such income is earned, eg. Maturing of FD.
d) No income tax, inheritance tax or gift tax is levied on property obtained by Will or Succession. However, once the house is
legally transferred, the receiver may have to pay wealth tax, in case net
worth of all his properties exceeds Rs 30 lakhs. Obviously, income tax will also be henceforth levied on income arising from the property.
Procedure For Filing the Return. The IT Return of the deceased may be filed Off Line at the IT Office or Online, following the relevant procedure outlined below.
a) Off Line Fi l i ng of Return. This procedure will require a visit to the Assessing Office by the Legal heir along with the PAN Cards of self and the deceased, Death Certificate, Relationship
Proof and proof of being the Legal Heir. After verifying the documents, the Assessing Officer will accord approval for the Legal Heir to file the return. The Return will be filed under the name of the Late Assessee in the following manner. "Late (Name of Assessee) through Legal Heir (Name of Legal Heir)". The PAN card of the deceased will also be surrendered once the final Return has been filed and assessment completed.
b) On Line Filing of
Return. For filing an e-return, the Legal Heir will have to obtain a Digital
Signature Certificate (DSC). Thereafter, a request is to be made online by sending an email to "efiling.administrator@incometaxindia.gov.in" mentioning the names, PAN numbers, dates of birth of the deceased and the Legal Heir along with a scanned copy of the death certificate. After processing, the -filing administrator will link the PAN card of the legal Heir to that of the deceased and authorise filing of an e-return, using the DSC of the Legal Heir.
The above is intended to provide a basic understanding
of the procedures involved in settling the Income Tax dues of a: deceased individual. However, it will be advisable to obtain professional assistance in the eventuality that a Return has to be filed under such circumstances.
CHECK
LIST -- ACTION TO BE TAKEN ON DEMISE OF PENSIONER.
(a)
Death if due to accident or unnatural causes should always be reported to the
Police Station in whose jurisdiction the area falls. It avoids lot of troubles
later on. In such cases get the autopsy done to establish proper cause of
death.
(b)
Do obtain two ink signed copies of Medical certificate specifying cause of
death from the Hospital or the authorized Medical Practitioner. One of these is
required by the authorities at the cremation/ burial ground. The other is
required by the authorities (Registrar of Deaths & Births) who issues Death
Certificates. Obtain cremation/burial certificate from the cremation/burial
ground.
(c)
A close relative should apply for issue of Death certificate within 15 days of
the death of the pensioner/ deceased. Obtain at least 20 ink signed & equal
number of Photostat copies duly attested by a class one officer.
(d)
Write to the Pension paying Bank Intimating them of demise of the pensioner,
asking them to discontinue the pension of the pensioner and payment of the
family pension of the spouse l N O K (give name). Enclose ink signed death
certificate & copy of the original P P O having joint photograph of the
pensioner & spouse/ NOK. Also state PPO and pension S /B A/C numbers..
Sample Application form as at Annexure
(e)
If the Pension A/c is a joint account or the spouse is a nominee in it Then it
is simpler to operate the same A/C for family pension, otherwise a fresh S/ B
A/C is to be opened in the same bank. It requires proof of Identity
and
proof of Residence. Photo copy of voter I Card! PAN card will suffice -
with three copies of attested photographs
(f)
Write separately to Pension sanctioning Authority, PCDA ( P) to start family
pension, on demise of the pensioner and enclose ink signed copy of death
certificate:-Sample Application is at Annexure
(g)
In the case of Retired Army Pensioner Write to the A Gs branch (MP-5, CW 4) to
update their records. & to Pay Platinum Grant if Applicable As per
Annexure.
(h)
If the age was less than 70 years write to Army Group Insurance Fund (AGIF) to
Make payment of life insurance amount. Application Performa at Annexure
(i)
Return Retired Officers I Card to Area HQ (lnt Br.) for further Disposal.
(j)
If there are other Insurance Policies write to them to pay Insurance amount.
(k)
. Write to
all banks wherein the pensioner has his accounts to transfer closing balances
to the spouse / N O K giving bankers address, a/c number.
(I)
Write to Regional Transport Officer to transfer the Automobile to the NOK
(m)
Write to Arms Licensing Authority to transfer the weapon (if any) to the NOK
meanwhile deposit the weapon(s) in concerned Police Station Arms Dealer for
safe custody. The NOK should apply forArms License at the earliest.
(n)
Write to Electricity Providing Agency to transfer the meter in the name of
spouse/NOK and start further billing against that name.
(o)
Write to the Telephone providing Agency to Change the name of the subscriber,
transfer the connection to the name of the Spouse/NOK for further billing
(p)
Apply to AWHO to transfer the dwelling unit to the spouse/NOK. Performa for
Application should be obtained from the AWHO / Welfare Society . The Society
has to render No Objection Certificate (NOC).stating that there is No
encroachment of common land, No major modification to the Approved design and
all Dues to the Society has been cleared. If not already done you may have to
do it before they issue NOC
(q)
Write to all the clubs & societies to transfer the membership to the
spouse/NOK
(r)
Write to all Debtors to clear all dues and make payment to the Spouse/NOK.
(s)
Clear the outstanding dues if any of the Creditors and credit cards and loans
taken if any. Return the credit cards to the Bank concerned.
(t)
Some of the banks may have issued Insurance certificate for the amount of
FD/Bank Balance then claim it.
(u)
Write to Income Tax authorities to intimate death of the Pensioner to close his
Income Tax file and open Income Tax file in the name of the Spouse/NOK Quoting
PAN number of both.
(v)
Write to the Municipal Authorities to Close Property case file of the deceased
person and open it in the name of the spouse/NOK
(w)
Approach the district Courts for Probate of the WILL, if it is in possession,
otherwise obtain a Succession Certificate. From the District Judge.
(x)
Obtain Probate of WILL (if held) otherwise succession certificate is required
from the District Judge under Indian Succession Act 1925.
These
Instructions are repeated at the end to be used as a check list.
THERE
ARE LARGE NUMBEERS OF LETTERS TO BE ISSUED TO VARIOUS AUTHORITIES ON THE DEMISE
OF A PENSION OR THE FAMILY PENSIONER ENCLOSING THE ORIGINAL DEATH CERTIFICATES.
IT IS SUGGESTED THAT THE FAMILY SHOULD OBTAIN MIN OF 20 ORIGINAL COPIES OF THE
DEATH CERTIFICATE FROM THE REGISTRATION AUTHORITY.
WHILE WE HAVE GIVEN FEW URGENT LETTERS WHICH SHOULD BE ISSUED IMMEDIATELY
AS UNDER IN THIS POST, A COMPLETE SET OF THE DRAFT LETTERS IS ALSO
AVAILBLE ON THIS SITE . PLEASE CLICK HERE TO ACCESS THE COMPLETE SET OF THE
DRAFT LETTERS. DO TAKE TIME TO ISSUE ALL THESE AS SOON AS
POSSIBLE.
PLEASE MODIFY THE LANGUAGE OF THE LETTERS GIVEN HERE
SUITABLE FOR THE FAMILY PENSIONERS.
DONOT
FORGET TO FILE THE LAST INCOME TAX RETURN OF THE DECEASED.
******************************************************************
NOTE :- In addition to the Draft Letters placed as follows, required to be initiated on the demise of a Defence Pensioner we have placed these in duly compiled in MS WORD Format for ease of copy pasting on our web site
******************** *************** ************
PLEASE MODIFY THE DRAFTS IRO FAMILY PENSIONERS.
********** ********** *******
DRAFT
LETTER FOR BANK (PDA) FAMILY PENSION
From
Name.
Mrs ..... W/O IC ..........
Address
Tele
No.
Date
To,
The Manager
Name of Bank Address
Sir,
GRANT
OF FAMILY PENSION ON DEMISE OF PENSIONER.
1.
Reference- Our Joint Pension SB A/C No.
maintained in your Bank.
2.
I regret to inform you that my husband, IC No,
RANK ……… NAME as in PPO ...... ..... ..........
......... left for his heavenly abode on DATE at
TIME . Certificate of his death is
enclosed herewith for your records.
3, He was drawing his Retiring Pension through your
bank through Jt Acct as mentioned above. In view of the above it is requested
that the family pension for me be commenced forthwith as per instructions based
on the PPOs held in your bank.
4. It is submitted that I will like to continue
drawing my family pension through the same Joint Account as per instructions of
the Reserve bank of India dt 03 Jun 2013.
Yours truly
(Mrs )
Copy to : PCDA (P), Dropadi Ghat, Allahabad 211014: for similar action.
***************** *************** **************** ****
DRAT
LETTER FOR ARMY GROUP INSURANCE EXTENDED POLICY
From:
Name
House
No.
Tele No
, Mob
Address
File No.
Date
To
Chairman,Army
Group Insurance Fund
AGIF
House,
Rao
Tularam Marg,
NEW
DELHI - 110010
Sir,
Sub:-
ENCASHMENT OF EXTENDED ARMY GROUP INSURANCE POLICY
Ref.
Extended Army Group Insurance Certificate
No.
issued to IC
No.
Rank
Name
of Corps of signals. (Encl in original)
1.
I regret to inform you that my spouse, I C.
No.
Rank
Name
has
expired on at
Has
expired on ……….. ….. 2011, His/Her Death
Certificate issued by
…………… is
enclosed for ready Reference.
2.
I am enclosing the Extended Army Group Insurance Certificate for
encashment duly completed in all respect. His date of birth is 18/02/1942. Kindly
send the cheque of the sum assured to me on my address as given above. My Bank
details are as under:-
SSB
A/C No.
Name
and address of my Bank
Thanking
you in anticipation, Yours Faithfully
Signature
(Name)
************* ************ ************
*********************
DRAFT
LETTER FOR ARMY OFFICERS BENOVELENT FUND – RS 50,000/-
SINCE
THE SCHEME STANDS CLOSED WEF DEC 2017 AS SUCH, THIS LETTER WAS APPLICABLE
FOR OFFICERS BORN BEFORE IN 1944 OR EARLIER AS SUCH DELETED.
*************
************ ************ *********************
DRAFT LETTER FOR REPORTING DEMISE OF A SERVICE PENSIONER TO OFFR'S
RECORDS. (MOST IMPORTANT)
From;
Name
House No./Sector
Locality TeleNo.
City&
PIN
File
No.
Date
Director
(MP 5&6}
AG's
Branch, IHQ of MOD (ARMY)
West
Block lll, RK Puram
New
DeIhi110066
Subject:-
Reporting the Demise of
IC Rank
Col
Name (Late)
of Corps of
Signals.)
Reference
PPO/e-PPO No,. ……………….. (Photocopy enclosed)
1.
I regret to inform you that my husband, IC
No. Rank
Name
has expired on ( date) at (Name of
Hosp) , Address(Place) ,
Due
to (Cause of Death)
The Certificate of his death Issued by
(Civil Authority)
is enclosed for your records..
Yours
Faithfully,
Signatures
(
Name- Mrs xxxxx xxxxxx xxxxx xx)
W/O
Late xxxxx xxxxxxxx xxxxxxx
Copy
to:-
MOD IHD, Army/HQ AG ( CW 4)
NOTE -
Mark copies of this letter to own directorate , Poly Clinic, Dependent CSD,
Station HQ and Vetera's cell in local HQ of your station
*****************
***************** *************** ******************
CHECK
LIST -- SUMMARY OF ACTIONS REQUIRED
1.
In case of death due to accident lodge an FIR with the nearest Police Station,
and get their written permission before last rites are performed.
2.
Arrange last rites even in cases of natural demise only after getting Medical
Certificate of cause of Death from a doctor (Authorized Medical Practice nor).
Intimate time of Funeral and CHAUTHA/UTHALA/ Prayer meeting to all concerned
preferably through an insertion of obituary in News Papers(s).
3.
Apply for and obtain Death Cetificate-20 or more copies from the Office of
Registrar of Births and Deaths/ Municipal Authority. These are required to be
submitted with all claims.
4.
Forward the information with certified photocopy of Death Certificate To the following:
(a)
PCDA (Pension), AG's Branch MP 5 (b) and PS4.
(b)
Army Officer's Benevolent Fund for Payment of Platinum Grant. (c) AGIF For
settlement of life Insurance cover as applicable
(d)
Station HO To surrender Identity Card of the deceased Officer and Issue of CSD
Canteen Card.
(e)
Bankers forfamily Pension, FD's Loans (if any), PPF and Locker:
(f)
Clubs For transfer of membership or refund of security deposit as applicable.
(g)
Municipal Authority/AWHO/DDA/NDA/GNDA/HUDAILOCAL Development Authority For
transfer of House /Apartment to a single name of the surviving spouse as per
WILL of the deceased.
(h)
MTNUBSNUTELECUM COMPANEY For transfer of tale connection and future billing.
(i)
BSES/NDPULOCAL ELECTRICITY
DEPARTMENT
For transferring of electric connection and future billing in the name of the
house owner.
(j)
ITO For closing of file of the deceased and linking up with the files of the
beneficiaries and for wealth Tax assessment.
(k) Licensing Authority for motor vehicles, Personal Arms and Tractors etc For
Transfer of Ownership.
(I) LIC/GIC/Insurance Companies/Banks for insurance policies covering Life,
Medical, Vehicles and property etc.
(m) Secretary Zila Saink Board For issue of Ex-Servicemen widow's Identity
card.
5.
Obtain Probate of WILL (if held) otherwise succession certificate is required
from the District Judge under Indian Succession Act 1925.
CHECK LIST - ACTIONS BY THE FAMILY IMMEDIATELY AFTER PENSIONER'S OR
FAMILY PENSIONER'S DEMISE
1. Collect ‘Death Certificate’ (minimum 25 original copies) from
Corporation/competent authority.
2. Send original copy of death certificate with a simple covering letter giving
all service particulars (No; Rank; Name; Dates of recruitment, marriage,
retirement, death; Name and relationship of Next of Kin; ….. ) to the
following:
a. Record Office and Service Headquarter
b. The Canteen Manager (CSD) with Canteen Card, if issued only in husband’s
name along with the application for issue of new card in your name.
c. The Branch Manager of Your Bank (from where pension was being paid.) asking
them to commence family pension from the date of demise of your husband.
Indicate bank account number in the beginning of the letter.
Note: The family pension is % 50% of husband’s pension. Please see that the
bank starts giving the family pension in 2 or 3 months time. If not, ask the
bank in writing and in person to credit correct pension amount. If you fail to
do this you will keep receiving your husband’s original pension and when the
Bank realizes its mistake, the bank will recover the additional amount paid by
them through heavy monthly installment.
3. Return following documents of your late husband as indicated against
each:
a. Armed Forces Identity Card: To the issuing authority.
b. Identity Card by Zila Sainik Welfare Org —Local District ZSWO and apply for
fresh card for yourself.
c. ECHS Card – To ECHS Regional Office if issued only in husband’s name
4. Destroy the following cards immediately:
a Husband’s Credit / Debit Card
b Husband’s Driving License
c Husband’s PAN Card - After submission of his last Income Tax Return after
demise.
5. Inform nearest hospital/MH within prescribed time limit for action if your
husband has pledged to donate organs.
6. Please note that the FOLLOWING BENEFITS are payable to you:
a Pension at current rates with DA from next date of death of husband by
Bank.
b A one- time grant from ZSWO.
c One-time payment for funeral expenses from your CSD Canteen.
d Monetary allowance if your husband was awarded gallantry award.
e Two pensions with effect from 24 Sep 12 or from next day of death of husband
in case he was drawing two pensions , one from Armed forces and second
from other Govt. Dept/ PSU/ Ministry/ State Govt./ Ordnance Factory/ Bank etc
.For further details contact ESM Org for help.
f Full income tax exemption for entire pension amount under I T Act, if your
husband was a recipient of a gallantry award.
7. Submit declaration of savings under Section 80C in April every year to your
bank (in their Format) to avoid excess recovery of income tax.
8. Never put your signature on a blank paper or other documents. Sign the
document only when you have read and/or understood its implication after
signing.
9. Make a will well in time for distribution of wealth and property.
10. Inform Records/ Service Headquarter whenever you change your permanent
address from earlier recorded address.
Notes:
• Your disabled child who is medically unfit to earn his/her own livelihood,
unmarried daughters including widowed and divorced whose consolidated income is
not more than Min Pension + DA are eligible for family pension after you.
Please refer to the detailed post in this regard on this blog site.
• Your family pension will continue even if you re-marry.
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