The Income Tax Department announced that senior citizens above the age of 75 will be exempted from filing income tax returns. The provision is only applicable for those who have only pension and interest as the sole source of income.
The rules and declaration form for such senior citizens were notified by The Central Board of Direct Taxes (CBDT). They 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 new provision was announced by the finance minister during the union budget, reducing the burden from senior citizens. “For senior citizens who only have a pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income,” the finance minister further added.
The provision is only valid if the below conditions are met:
(i) The senior citizen is resident in India and of the age of 75 or more during the previous year
(ii) 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 receiving his or her pension income
(iii) This bank is a specified bank. The central government will be notified a few banks, which are banking companies, to be the specified bank, mentioned in the Budget 2021.
(iv) He or she has to furnish a declaration to the specified bank. The declaration containing such particulars, in such form and verified in such manner, as may be prescribed
Income Tax Return filing Extension
For individual taxpayers, the government has extended the deadline for ITR filing. After facing several setbacks and issues with the new website portal for the filing, the action was taken to rectify the issues along with extending the deadline for the e-filing. The new deadline is announced as 30th September 2021. A fine of 5000 rupees is also announced for not adhering to the deadline but it will be reduced to 1000 if the salary of the financial year is less than 500000 rupees.