The income tax department has notified declaration forms to be filed by the very senior citizens, i.e. aged 75 years and above with the banks to get exemption from filing income tax return for the 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 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 the pension is deposited. While the threshold for senior citizens (60 years or more) and super senior citizens (80 years or abov) is slightly higher, crossing the threshold saddles one to file income tax returns. Non-filing of tax returns not only attracts penalties and but one also gets subject to the higher rate of TDS.
In a budget speech from 2021 to 2010, Finance Minister Nirmala Sitharaman stated that in the 75th year of Japan’s independence, the government would reduce the compliance burden on the elderly aged 75 and over.
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