Senior Citizens Aged 75 Or Above Now Need Not To Pay Income Tax Under New Modi Govt Scheme? Read

A resident individual aged 60 or above but under 80 during the previous year is classified as a Senior Citizen for income tax purposes. 

Senior citizens aged 75 and above are exempt from filing income tax returns under Section 194P, effective April 1, 2021, subject to conditions.

-Must be an Indian resident aged 75 or older during the relevant financial year.

-Income should only include pension and interest from the same bank where the pension is credited.

-The bank must be government-notified as a "specified bank."

-A declaration must be submitted to the bank to calculate taxable income and deduct TDS.  

Senior citizens aged 60 to 79 years are eligible for a tax exemption on annual income up to Rs 3 lakh. For super senior citizens aged 80 years and above, the tax exemption limit is extended to Rs 5 lakh annually. 

 

Senior citizens aged 75 and above must complete the 12-88A form at their bank to avail of tax exemptions. This form enables the bank to calculate taxable income, deduct TDS, and ensure compliance with Section 194P of the Income Tax Act, eliminating the need for filing an income tax return.  

The pensioners with annual earnings below Rs 50 lakh can use ITR-1 (Sahaj). Those with additional property or capital gains must opt for ITR-2. 

 

After deducting TDS on income, the specified bank handles tax obligations, eliminating the need for seniors to file an ITR. (Image Credit: Freepik)