Govt notifies I-T forms for senior citizens
The income-tax (I-T) 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.
New Delhi: The income-tax (I-T) 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.
The 2021-22 Budget 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.
