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Inheritance & Estate

The parent you inherited from never had a PAN, and what that means for you

You are trying to settle the estate from abroad, and it turns out your late parent never had a PAN, so nothing seems to fit the forms.

Your parent has passed away, and as you try to deal with the Indian property and accounts from abroad, you hit a wall: they never had a PAN. Every process seems to assume one exists, the portal, the bank, the buyer's TDS working, and you are stuck wondering whether you have to obtain a PAN for someone who has died, or whether you can even proceed. The reassuring reality is that for most of what you actually need to do, the deceased's PAN is not required at all.
Last reviewed: 26 July 20268 min readReviewed by Preetesh Maloo, CA

The short answer

In most cases you do not need the deceased's PAN. Inheritance itself is not taxed in India, and when you later sell the inherited property you sell it on your own PAN as the heir, so the buyer deducts TDS under Section 195 against your PAN and you claim it on your own return. The deceased's PAN is only needed to file the deceased's own final return for income they earned up to the date of death. Where that is genuinely required and they never had a PAN, one can be obtained for the estate through the legal representative. As the legal representative you stand in the deceased's place for their tax (Section 159), but only up to the value of the estate.

References on this page

  • Section 159, Income-tax Act: the legal representative is liable for the deceased's tax, capped at the estate
  • Section 195, Income-tax Act: TDS on the inherited-property sale, against the heir's own PAN
  • Section 49(1) / Section 2(42A): the heir carries the previous owner's cost and holding period
  • Estate Duty Act abolished 1985: no inheritance or estate tax in India

Inheritance is not taxed, and the sale is on your PAN, not theirs

Two facts remove most of the worry. First, India has had no inheritance or estate tax since 1985, so simply inheriting the property or the accounts is not a taxable event and does not require you to file anything in the deceased's name for the inheritance itself. Second, once the property is transmitted to you, you are the owner, and when you sell it you sell on your own PAN.

That means the buyer deducts TDS under Section 195 against your PAN, and you claim that credit on your own return, where you also compute the gain using the cost and holding period carried over from your parent (Section 49(1) and Section 2(42A)). None of that needs the deceased to have had a PAN. So the sale, the TDS and the gain all run cleanly off your own PAN.

When the deceased's PAN actually matters

There is one situation where the deceased's PAN is relevant: filing the deceased's own final return, for income they earned in the year up to the date of death, or to claim TDS that was deducted in their name before death. As the heir you are their legal representative, liable to settle that final position but only up to the value of the estate (Section 159).

If your parent had little or no taxable income of their own before death and no TDS sat in their name, there is usually no final return to file and the missing PAN simply does not arise. It becomes an issue only where there was pre-death income or TDS to account for. So the first question a practising CA asks is a narrow one: was there any income or TDS in the deceased's own name that needs a final return, or is everything now flowing through you as the heir?

Obtaining a PAN through the estate, where it is truly needed

Where a final return genuinely has to be filed and the deceased never had a PAN, a PAN can be obtained for them through the legal representative, who applies as the representative of the person who cannot apply for themselves. With that in place, the legal-heir registration on the income-tax portal, which is built around a deceased who had a PAN, can be completed and the final return filed.

This is a specific, document-heavy step, and the exact portal path for a parent who never held a PAN is not a common one, so it is worth having a CA handle it rather than attempting it blind from abroad. In practice, though, most NRI heirs find they never reach this step at all, because the estate is settled and the property sold on the heir's own PAN, which is the ordinary route.

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What's involved

What the CA actually does

  1. 1

    We check whether a deceased PAN is even needed

    We look at whether your parent had any income or TDS in their own name before death. In most cases there is no final return to file, so the missing PAN is a non-issue and we proceed on your PAN.

  2. 2

    We set up the sale on your PAN

    We transmit the property to you, compute the gain with the carried-over cost and holding period, and file a Form 13 so the buyer withholds TDS on your real gain against your own PAN.

  3. 3

    We obtain a PAN through the estate only if required

    Where a final return truly has to be filed, we obtain a PAN for the deceased through the legal representative and complete the legal-heir registration, so the final position is closed properly.

  4. 4

    We handle it all remotely

    We run the registration, the sale, the TDS and the returns from the Indian side under your authorisation, so you do not have to travel.

What to have ready

Documents you'll typically need

  • Death certificate
  • Legal-heir or surviving-member certificate, or a registered will
  • The inherited property or account documents
  • Any record of income or TDS in the deceased's name before death

Your destination country can change the details

Requirements differ from one consulate, university and visa route to the next — how recent the figures must be, how long funds must have been held, and which certificates are mandatory. We assemble the documents around the exact checklist you're applying under. To see how India's tax treaty with your country of residence affects related filings, set your country below or compare all 31 countries.

Frequently asked questions

Common questions

Late parent had no PAN and the estate is stuck?

Tell us what was inherited and whether they had any Indian income. A practising CA will map the cleanest route on a free call, no obligation.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.