Forms for exemption from income tax returns for senior citizens notified. Details here
The income tax department has notified declaration forms to be filed by senior citizens aged 75 years above with the banks to get exemption from filing I-T return for fiscal year 2021-22.
The 2021-22 Budget had introduced a provision for exempting senior citizens of 75 years above having pension income interest from fixed deposit in the same bank from filing income tax returns for the financial year beginning April 1.
The Central Board of Direct Taxes (CBDT) has now notified rules declaration forms which senior citizens would have to file with the specified bank who in turn would deduct tax on pension interest income deposit with the government.
Such exemption from ITR filing would be available only in case where the interest income is earned in the same bank where pension is deposited.
The income-tax act requires all individuals having income exceeding the threshold limit to file their income-tax returns. While the threshold for senior citizens (60 years or more) super senior citizens (80 years or more) is slightly higher, crossing the threshold saddles one to file tax-returns.
Non-filing of tax return not only attracts penalties but one also gets subject to higher rate of TDS.
Nangia & Co LLP Director Itesh Dodhi said recognising the compliance burden on senior citizens, this year’s budget brought in some relief to the senior citizens above the age of 75.
“The CBDT has notified the forms (Form 12BBA) for declaration by the senior citizens to the banks notified the reporting requirement by the specified banks. With dedicated counters for senior citizens in all major banks banks providing doorstep banking to senior citizen, this measure is expected to make life easier for senior citizens,” Dodhi added.
In the Budget Speech 2021-22, Finance Minister Nirmala Sitharaman had said that in the 75th year of Independence of our country, the government shall reduce compliance burden on senior citizens who are 75 years of age above.
“For senior citizens who only have pension interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income,” she had said.
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