The revenue tax division has notified declaration varieties to be filed by senior residents aged 75 years and above with the banks to get exemption from submitting I-T returns for the fiscal yr 2021-22.
The 2021-22 Budget had launched a provision for exempting senior residents of 75 years and above having pension revenue and curiosity from mounted deposits in the identical financial institution from submitting revenue tax returns for the monetary yr starting April 1.
The Central Board of Direct Taxes (CBDT) has now notified guidelines and declaration varieties which senior residents must file with the required financial institution who in flip would deduct tax on pension and curiosity revenue and deposit with the federal government.
Such exemption from ITR submitting could be out there solely in instances the place the curiosity revenue is earned in the identical financial institution the place the pension is deposited.
The income-tax act requires all people having revenue exceeding the brink restrict to file their income-tax returns. While the brink for senior residents (60 years or extra) and tremendous senior residents (80 years or extra) is barely greater, crossing the brink saddles one to file tax returns.
Non-filing of tax returns not solely attracts penalties and but in addition will get topic to the upper fee of TDS.
Nangia & Co LLP Director Itesh Dodhi mentioned recognizing the compliance burden on senior residents, this yr’s funds introduced in some aid to the senior residents above the age of 75.
“The CBDT has notified the forms (Form 12BBA) for a declaration by the senior citizens to the banks and notified the reporting requirement by the specified banks. With dedicated counters for senior citizens in all major banks and banks providing doorstep banking to senior citizens, this measure is expected to make life easier for senior citizens,” Dodhi added.
In the Budget Speech 2021-22, Finance Minister Nirmala Sitharaman had mentioned that within the seventy fifth yr of Independence of our nation, the federal government shall scale back the compliance burden on senior residents who’re 75 years of age and above.
“For senior citizens who only have a pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income,” she had mentioned.
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