Requirement to File Income tax Return
Every individual having total income of more than Rs.2.50 lakh in a financial year (April 1 to March 31 of next year) is required to file Income tax Return within a prescribed time.
Is relief from filing Income tax Return available for all senior citizens?
No, it is available for certain category of senior citizens.
Relaxation for certain category of Senior Citizen
Easing compliance requirements and bringing relief to senior citizens who are of the age of 75 year or above, Finance Minister Nirmala Sitharaman has proposed relaxations in filing their Income Tax Return for 2021-2022.
Eligibility for relaxation
The senior citizen is required to fulfill following conditions:
- The senior citizen is resident in India and of the age of 75 or more during the 2021-22.
- Has pension income and interest income from the same bank in which he is receiving his pension income.
- This bank is a specified bank. The Government will be notifying a few banks to be the specified bank and
- Senior citizen shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.
Are such senior citizens not required to pay tax at all?
Such senior citizens shall be paying tax on their income as usual as per the rates in force.
Who computes the tax and who pays it ?
- Once the declaration is furnished, the specified bank would be required to compute the income of such senior citizen after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A of the Act.
- The specified bank shall deduct income tax on the basis of rates in force.
- The specified bank thereafter pays the tax on behalf of the senior citizen.
- Once this is done, there will not be any requirement of furnishing return of income by such senior citizen.