Senior Citizen – Exempt from Filing their ITR

To make tax compliances hassle-free and to provide relief to senior citizens, Government of India through Union budget 2021 came up with a new section which provides conditional relief from filing the Income Tax Return. As per Section 139 of Income Tax Act, every person who has a taxable income is required to file Income Tax Return.

However, as per Section 194P of the Income Tax Act, a senior citizen shall not be required to file his/her income tax return subject to the specified conditions. The conditions that are to be met are listed below:

  1. The senior citizen is an individual of age 75 years and more.
  2. Senior citizen is resident of India.
  3. Senior Citizen has income only by way of pension and interest which is from the same account in which Pension is received.
  4. Senior citizen furnishes a declaration to the specified bank.

If a senior citizen fulfills the above-mentioned conditions, such senior citizen shall not be liable to file Income Tax Return.

One condition that a senior citizen, being of age 75 years or more, shall have to furnish a declaration to a specified bank which shall be notified by Government from time to time. Such declaration shall contain details of Income (which shall be only Pension income & Interest income received in the same bank account as of Pension income) along with all the deductions available under Chapter VI A of the Income Tax Act. Basis these details, the specified bank shall compute net taxable income considering the declared income in the declaration and considering the deductions available under Chapter VI A and rebate allowed under Section 87A of the Income Tax Act. The bank shall then deduct applicable TDS basis this net taxable income. Once the TDS has been deducted senior citizen shall not be required to furnish the return of income.

Jitesh Telisara & Associates LLP, CA In Viman Nagar is a professionally managed firm catering to domestic and international clients with a broad range of services in domestic and international taxation, regulatory and advisory services and crosses border transaction-related services.

The team at the firm has dedicated and experienced professionals and associates like Chartered Accountants, Company Secretary and Consultants to provide end to end services to your business. With the effort of gaining a deep understanding of your business, the team is committed to providing valuable, consistent and efficient services based on its in-depth knowledge and wide experience in the areas of audit, taxation, regulatory compliances, and related business services.

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