Income Tax Return for 75 years and above: Modi Govt does this to confirm EXEMPTION from filing I-T returns for these senior citizens
Income Tax Return Filing: In line with the announcement from Finance Minister Nirmala Sitharaman during the Budget Speech 2021-22, the income tax department has notified declaration forms to be filed by senior citizens aged 75 years and above with the banks to get exemption from filing I-T return for fiscal year 2021-22
In line with the announcement from Finance Minister Nirmala Sitharaman during the Budget Speech 2021-22, the income tax department has notified declaration forms to be filed by senior citizens aged 75 years and above with the banks to get exemption from filing I-T return for fiscal year 2021-22, reported news agency PTI.
See Zee Business Live TV Streaming Below:
In the Budget Speech 2021-22, FM 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 and above.
"For senior citizens who only have pension and 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.
Budget 2021-22 had introduced a provision for exempting 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.
The Central Board of Direct Taxes (CBDT) has now notified rules 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.
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) and 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 and 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 and notified the reporting requirement by the specified banks. With dedicated counters for senior citizens in all major banks and banks providing doorstep banking to senior citizen, this measure is expected to make life easier for senior citizens," Dodhi added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Sukanya Samriddhi Yojana vs PPF: Rs 1 lakh/year investment for 15 years; which can create larger corpus on maturity?
Power of Compounding: How much corpus you can generate with Rs 8,000 monthly SIP investment in 20, 25, 30, and 35 years | See Calculations
Top 7 Flexi Cap Mutual Funds With up to 52% SIP Return in 1 Year: Rs 20,000 monthly SIP investment in No. 1 fund has generated Rs 3.02 lakh; know about others too
Top 7 Gold ETFs With Best Returns in 3 Years: No.1 ETF has converted Rs 7 lakh investment into Rs 10.80 lakh; know how others have fared
07:47 AM IST