ITR filing: No need to file returns for senior citizens under certain conditions; know details
Central government announced in its Budget 2021 announcements the provision to exempt older individuals who meet certain conditions.
Taxpayers who have not yet filed their Income Tax (IT) filings should do so immediately as the July 31 deadline approaches. Senior citizens are excluded from filing ITRs under specific circumstances, although the Union government has made it essential for everyone, including them, to do so.
The central government announced in its Budget 2021 announcements the provision to exempt older individuals who meet certain conditions. The Centre imposed the following conditions by inserting Section 194P (which took effect in April 2021) into the Income Tax Act of 1961:
1) The senior citizen is an Indian resident who was 75 or older during the previous fiscal year, i.e. 2021-22.
2) He or she only has a pension and no other sources of income. However, the individual may also receive interest income from the bank where the pension income is held.
3) According to the Centre, the bank where pension and interest income is received is a 'specified bank.'
4) The senior citizen will be required to provide the bank with a declaration in the form and manner prescribed, informing it of particulars.
5) A 'specified bank,' according to a notification issued by the Government of India on September 2, last year, is any scheduled bank. These are the banks listed in the Second Schedule to the Reserve Bank of India (RBI) Act of 1934.