The income tax department has notified declaration forms 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 year 2021-22. The 2021-22 Budget had added a provision for exempting senior residents of 75 years and above having pension income and interest from constant deposit in the same bank from submitting income tax returns for the financial year starting April 1.
The Central Board of Direct Taxes (CBDT) has now notified policies and declaration forms which senior residents would record with the specified bank who in turn could deduct tax on pension and interest income and deposit with the government. Such exemption from ITR submitting could be to be had simplest in the case in which the interest income is earned in the same bank in which pension is deposited.
The income-tax act requires all people having income exceeding the threshold limit to record their income-tax returns. While the threshold for senior residents (60 years or more) and super senior residents (eighty years or more) is barely better, crossing the threshold saddles one to file tax returns. Non-filing of tax return now no longer simplest draws consequences and however one additionally gets subject to a better rate of TDS.
Nangia & Co LLP Director Itesh Dodhi stated recognising the compliance burden on senior residents, this year’s budget brought in a few remedies to the senior residents above the age of 75 years. “The CBDT has notified the forms (Form 12BBA) for a declaration by the senior residents to the banks and notified the reporting requirement by the required banks. With devoted counters for senior residents in all most important banks and banks providing doorstep banking to senior citizens, this measure is expected to make existence simpler for senior residents,” Dodhi added.
In the Budget Speech 2021-22, Finance Minister Nirmala Sitharaman had stated that in the 75 years of Independence of our country, the government shall lessen the compliance burden on senior residents who’re 75 years of age and above. “For senior residents who simplest have a pension and interest income, I suggest exemption from submitting their income tax returns. The paying bank will deduct the vital tax on their income,” she had stated.