New Delhi: According to Section 194P of the Income Tax Act, 1961, Income Tax Returns (ITR) filing is not mandatory for senior citizens aged 75 years of age and above. Such tax payers are exempted from ITR filing under certain conditions. Let’s find out what are those circumstances. July 31, 2024 is the deadline for ITR filing 2024.
The Income-Tax (I-T) Department defines senior citizens as people who are aged 60 years and above but less than 80 years old. While, super senior citizens are defined as those who are 80 years old and above. Such people are not required to file ITR under the Section 194P subject to following terms and conditions.
ITR filing not mandatory for senior citizens under following conditions
Senior Citizen should be of age 75 years or above
Senior Citizen should be ‘Resident’ in the previous year
The senior citizen has income sources in the form of only pension and interest incomes.
He should get credit of interest from the same specified bank in which he gets pension
The senior citizen must submit a declaration to the specified bank.
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax (TDS) for senior citizens above 75 years of age, there will be no requirement for ITR fling by the senior citizen.
Section 194P is applicable from 1st April 2021.
Senior citizen and super senior citizen basic tax exemption limit under old and new tax regimes
Senior citizens have been given basic exemption limit of up to Rs 3 lakh under the old tax regime. while super senior citizens (80 and above) get exemptions on up to Rs 5 lakh income. Both of them are not required to perform ITR filing if their income is up to Rs 3 lakh under both the old and new tax regimes.
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ITR filing is not mandatory for a senior citizen provided the individual has only two income sources which are pension and interest incomes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
