Income Tax Return Alert: The Income Tax department has brought a piece of good news for senior citizens above 75 years of age. Now they don’t need to file ITR if they meet certain conditions. The income tax department has issued a fresh notification in this regard.
The Central government in its 2021-22 Budget had introduced a provision to exempt senior citizens of 75 years and above having pension income and interest from fixed deposit in the same bank from filing income tax returns for the financial year beginning April 1.
In a fresh notification, the Central Board of Direct Taxes (CBDT) has notified the new guidelines and declaration forms which senior citizens would have to file with the specified bank who in turn would deduct tax on pension and interest income and deposit with the government.
As per the notification, the exemption from ITR filing would be available only in case where the interest income is earned in the same bank where pension is deposited.
As per the earlier rules, the income-tax act needs all individuals having income exceeding the threshold limit to file their income-tax returns. While the threshold for senior citizens (60 years or more) and super senior citizens (80 years or more) is slightly higher, crossing the threshold saddles one to file tax-returns.
The senior citizens, instead of filing ITR, they just will have to declare their income in Form 12BBA, which has been notified by the Central Board of Direct Taxes (CBDT). They will have to submit this form to specified banks where they maintain their accounts and receive pension.
The Centre proposed to insert a new section to provide a relaxation from filing ITR for senior citizens who are above 75, if the following conditions are met:
- The senior citizens must be residents in India and of the age of 75 or more during the previous year
- They should have only pension and no other income. They may have interest income from the same bank in which they receiving pension income.
- The central government will notify a few banks, which are banking company, to be the specified bank, mentioned in the Budget 2021.
- The senior citizens will have to furnish a declaration to the specified bank. The declaration containing such particulars, in such form and verified in such manner, as may be prescribed
However, it must be noted that the senior citizens who are above 75 years age, are not exempted from paying tax but only from filing income tax return (ITR) if they are eligible to certain conditions.
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