In the Union Budget 2021, the finance minister has declared that senior citizens above the age of 75 years, who simply have pension and interest as a cause of income has exempted from filing the income tax returns. In this article, we will discuss No ITR filing for senior citizens aged 75 years and above.
No ITR filing for senior citizens aged 75 years and above
The ministry of finance has announced that the government shall diminish the compliance burden on senior citizens who are 75 years of age and above. For senior citizens who only possess a pension and interest income.
Senior citizens that are above 75 years of age are not excused from paying tax. However, they are exempted from ITR filing if they fulfil particular conditions. The exemption from filing income tax returns would be available only in the case where the interest income is obtained in the same bank where the pension is deposited.
Further, as per the Budget 2021, banks will deduct the income tax which the taxpayer has to spend and deposit to the government. For this, the condition is that the person should have only pension income and interest from fixed deposit should gather in the same bank.
Relaxation for Senior Citizen
Budget 2021 has proposed a new segment to render relaxation from filing the return of income for senior citizens who are above the age of 75 if the subsequent conditions are satisfied:
- The senior citizen is resident in India and of the age of 75 or more during the previous year
- The senior citizen who has a pension and no other income. However, he or she may have interest income from the same bank in which he or she is taking his or her pension income
- The central government will be notified a few banks, which are banking company, to be the defined bank
- He or she has to furnish a declaration to the specified bank, in such form and verified in a prescribed manner.
If you want any other guidance related to Union Budget 2021, please feel free to talk to our business advisors at 8881-069-069.
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