Inside the union budget 2021, the finance minister Nirmala Sitharaman stated that the senior citizens whose age is more than 75 years and their income source is only the pension and interest and will get privileged from furnishing the ITR.
In the budget speech, Sitharaman stated, “In the 75th year of Independence of our country, the government shall reduce the compliance burden on senior citizens who are 75 years of age and above.”
The budget 2021 has urged to embed the new section 194P to give you the relaxation from furnishing the ITR for the senior citizens whose age exceeds 75 years.
New Section 194P of the I-T Act
Section 139 of the income tax act operates the furnishing of the Income Tax Return through every person whose income exceeds the normal privileged limit. But the union budget 2021 used to give relief in terms of compliance burden for filing returns, exempting senior citizens whose age exceeds 75 years of age from furnishing the ITR, directed to the different conditions.
Circumstances for Privileged Beneath Section 194P
Resident in India and of the age of 75 or more
The senior citizen is a resident in India and has exceeded the age of 75 in the past year.
No other income than Pension
The senior citizens whose pension along with the additional income. But he or she might have the interest income from that bank where he or she is obtaining his or her pension income.
Submit the declaration which consists of some information to the particular bank
This bank is the designated bank. The central government will notify some banks which are banking firms to be the specified bank. He or she needed to file the declaration to the designated bank. The declarations consist of the particulars in the form and are verified in that way as might be prescribed.
Designated bank to mean a banking company named as agents of RBI under the Notification No. 98/2021 dated 2nd September 2021.
Declaration by Senior Citizen
The designated bank will deduct TDS on the grounds of the declaration furnished through the senior citizen to the bank. The declarations must contain numerous information such as the total income of the senior citizen, deductions claimed beneath section 80C to 80U, the exemption available beneath section 87A, and the confirmation via senior citizen of posing only pension and the income from the interest.
