By BW CFO World Online Bureau
A provision of exempting senior citizens of 75 years and above having pension income and interest from fixed deposit in the same bank from return filing from fiscal 21-22.
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 IT returns for the fiscal year 2021-22.
The union budget had introduced a provision of 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 deposits of pension and interest income with the government. Such exemption from ITR filing would be available only in case when the interest income and where the pension is deposited belong to the same bank.
The IT 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, but one also gets subject to higher rate of TDS.
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 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.