Section 194P - Relief to Senior Citizen regarding ITR Filing

 


Section 194P-Relief to senior Citizen regarding ITR Filing

 

Hon’ble FM Smt. Nirmala Sitaraman begins tax proposals of Budget 2021 by offering relief to Senior Citizens. On 75th year of independence, she proposed that certain classes of Senior citizens who fulfil following conditions are not required to file return of income u/s 139(1). 

 

Conditions for availing relaxations in Filing of Return for Senior Citizens

An individual is eligible to avail relaxations in Filing of Returns if he/she fulfils the followings:

1. Is 75 years or more during the year

2. Is Resident in India during the PY

3. Has only pension income and can derive bank interest from same bank in which the pension is received. Therefore, individuals receiving interest from any other bank will not be eligible to avail the relaxation    

4. The pension received should be received in banks as specified by Govt.

5. Declaration is furnished by the individual to the said specified bank

 

The specified bank as mentioned above shall deduct TDS on the basis of a declaration submitted by the senior citizen to the bank.

The declaration should contain:

1.Total Income of the senior citizen.

2.Deduction availed Under Section 80C to 80U.

3.Rebate available under section 87A.

4. Confirmation of senior citizen of having only pension and interest income.

 

Once this is done, there will not be any requirement of furnishing return of income by such Senior Citizen. The provisions of Section 194P is effective from 01/04/2021.

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