Union finance minister Nirmala Sitharaman has announced that senior citizens over the of 75 years, who only have pension and interest as their source of income, will not to have to file the income tax returns (ITR). The move announced in the Union Budget has been taken as senior citizens mostly have pension income parked in fixed deposits which yield interests and was taken to make the process simpler.
"In the 75th year of Independence of our country, we shall reduce the compliance burden on senior citizens. For senior citizens who only have a pension and interest income, I propose exemption of filing of income tax returns,” Sitharaman said in her budget speech.
Relaxation from filing ITR for senior citizens will be provided if the following conditions are fulfilled:
1. The senior citizen must be a resident in India and of the age of 75 or more during the previous year.
2. The senior citizen should have a pension and interest income from the same bank as the only source of income
3. The bank should be a specified bank which will be notified by the central government.
4. The senior citizen must furnish a declaration to the specified bank.
5. Once the declaration is furnished, the specified bank would be required to compute the income of the senior citizen after deduction allowable under chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year and deduct income tax on the basis of rates in force
{{/usCountry}}5. Once the declaration is furnished, the specified bank would be required to compute the income of the senior citizen after deduction allowable under chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year and deduct income tax on the basis of rates in force
{{/usCountry}}6. After this, there will be no requirement of furnishing return of income by the senior.
7. For other banks where deposits are held, senior citizens may choose to deposit form 15H so that no TDS is deducted by such a bank. However, in this case, the senior citizen will have to file an income tax return to claim a refund.