The Income Tax Department has notified the declaration form for exemption of senior citizens of 75 years of age and above to file income tax returns for the financial year 2021-22. Senior citizens will have to submit this form to the banks.
In the budget for the financial year 2021-22, a provision has been introduced for exemption from filing of tax returns for senior citizens aged 75 years and above, receiving pension income and interest on fixed deposits (FDs) in the same bank. These senior citizens will not be required to file income tax returns for the financial year beginning April 1.
Central Board of Direct Taxes (CBDT) has notified the rules and declaration forms for such senior citizens. Senior citizens will have to submit this form to the bank, which will deduct tax on pension and interest income and deposit it with the government. The exemption to file income tax will be available only in cases where the interest income is received from the same bank where the pension is deposited.
Under the Income Tax Act, all people earning more than a specified limit have to file a return. This limit is slightly higher for senior citizens (60 years or more) and extremely senior citizens (80 years and above). Non-filing of tax return attracts penalty as well as additional tax deducted at source (TDS) to the person concerned.
Nangian & Company LLP Director Itesh Dodhi said that to reduce the burden of compliance went some relief in 75 years and the budget for seniors over Finance Minister Nirmala Sitharaman your budget 2021-22 The speech had said that on the occasion of the 75th anniversary of independence, the government will reduce the compliance burden on senior citizens of 75 years and above.
