04 June 2021
My relative is 81 years old and he is an advocate and notary public by profession and also drawing pension from the State Government.
Due to Covid 19 Pandemic situation and age, during the last financial year 2020 - 2021, my relative stopped practicing Advocate profession and Notary. His professional income during the last financial year 2020 - 2021 is zero. He is getting only pension and interest income for the fixed deposit and savings bank account from the bank.
His income does not exist the ceiling limit at any assessment year so far.
As he is having Pan Card, he is filing income tax return in form ITR 3 till last assessment year 2020 - 2021.
But for this assessment year 2021 - 2022, his only source of income is pension and interest from bank alone. Professional income is NIL.
In this situation, which form is to be filed by him either ITR 1 or ITR 3 for this assessment year 2021 - 2022.
06 June 2021
The Budget 2021 has proposed to insert a new section to provide relaxation from filing the return of income for senior citizens who are above the age of 75, if the following conditions are satisfied:
The senior citizen is resident in India and of the age of 75 or more during the previous year The senior citizen who has pension and no other income. However, he or she may have interest income from the same bank in which he or she is receiving his or her pension income This bank is a specified bank. The central government will be notifying a few banks, which are banking company, to be the specified bank He or she has to furnish a declaration to the specified bank. The declaration containing such particulars, in such form and verified in such manner, as may be prescribed "Once the declaration is furnished, the specified bank would be required to compute the income of such senior citizen after giving effect to the deduction allowable under chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year and deduct income tax on the basis of rates in force," according to the Budget document. "Once this is done, there will not be any requirement of furnishing return of income by such senior citizen for this assessment year," Budget mentioned.
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