CA Umesh Sharma
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Arjun (Fictional Character): Krishna, Union Budget 2021-22 highlights that senior citizen above the age of 75 now need not file their Income Tax Return. Is that true? Krishna (Fictional Character): Arjuna, in the Union Budget 2021-22, senior citizen above 75 age are exempted from filing return o
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FAQ :
No, only senior citizens aged 75 or more, who are resident in India, have pension income and possibly interest income from the same specified bank, and no other income, are eligible for exemption from filing ITR.
Conditions include being a resident Indian aged 75+, having pension income and potentially interest income from the same bank where pension is received, and that bank being a 'specified bank' notified by the government. A declaration must also be furnished to the specified bank.
No, the exemption is only from filing the Income Tax Return (ITR). Senior citizens are still liable to pay income tax, which will be deducted at source by their bank.
Many senior citizens have interest income from multiple banks or choose banks offering higher interest rates, making it difficult to meet the condition of having interest income solely from the bank where their pension is received. Furthermore, if the bank makes an error in tax deduction, they would still need to file an ITR to claim a refund.
The government will notify specific banks that will be considered 'specified banks' for the purpose of this ITR filing exemption.
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