No ITR is required for senior citizen from AY 2022 – 2023
With an amendment in section 194P via Finance Act,2021, any person who is above the age of 75 are not required to file their IT – returns from the assessment year 2022 – 23. This section will be applicable from 1st day of April 2021.
WHAT ARE THE BENEFITS PROVIDED UNDER THE SECTION
- The eligible senior citizens needs to furnish a new form 12BBA according to rule 26D to his bank
- A separate Annexure-II in Form 16 will also be filed with the bank that provides the details of incomes and deductions available.
- “For computation of the total taxable income, the bank will consider the declaration submitted by the senior citizen, the pension and interest income received along with the applicable deductions and rebate and then deduct the amount of TDS accordingly and furnishes the form 16.
- Necessary amendment have been made in various forms which includes form 16, form 24Q, form 26QC and form 26QD to incorporate necessary changes related to provisions of section 194P.
ELIGIBLITY TO CLAIM EXEMPTION
To receive exemption under this citizen the person should be
- He should be above the age of 75 years
- He should be the resident in the assessment year.
- He has pension income and interest income only and it should accrued/earned from the same specified bank in which he is receiving his pension.
NON-APPLICABILITY OF THIS SECTION
Any specified person who is above 75 years of age operating multiple accounts in same or different banks is not eligible to claim exemptions under this section.