Relief to Senior Citizens: Income Tax Rules Amended; Tax will not have to be paid

The news of relief for senior citizens is spreading through out the country. Today, the Modi government at the Center provided an update on a commitment made by senior citizens in their Income Tax Return. The government amended the rules of income tax return for a category of older citizens prior to the Union Budget-2023, that has now been updated.

The Finance Ministry said in an official tweet on earlier this month, “Senior citizen over the age of 75 who have only a bank pension account and interest on a bank account as their only source of income can now submit ITR. A new section Section 194-P has been added to the Income Tax Act-1961 to address this. This section is effective as of April 20, 2021.”

Some restrictions have been changed as a result of this, and banks have been notified.

Relief for Senior Citizens!

Section 194P inserted in IT Act, 1961 exempting senior citizens above 75 years of age, having only pension & interest income, from filing ITR. Specified banks & relevant forms notified.#PromisesDelivered pic.twitter.com/KHQOIyQabr

— Ministry of Finance (@FinMinIndia) January 5, 2023

What is Amendment?

Section 194p has added and this section has been operationalized, according to the Central Board of Direct Taxes. A notification addressing the necessary forms and conditions has been issued in this regard. In addition, relevant changes have been made to Rule 31, Rule 31A, Form 16, and 24Q.

What did Finance Minister Say?

“Now that we are in the 75th year of our country’s Independence Day, we shall continue our path with enthusiasm,” Finance Minister Nirmala Sitharaman remarked. However, we will lessen the burden of tax compliance. We suggest exempting such senior citizens from submitting income tax returns if their income comes from pensions and interest. I will open an account, and the bank will deduct the amount of tax due on their earnings.