SENIOR CITIZENS OF AGE 75 YEARS OLD HAVING INCOME FROM PENSION AND INTEREST

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Senior citizens aged 75 or over, who receive income solely from pensions and bank interest, may be exempt from filing income tax returns under Section 194P. To benefit from this, they must provide a declaration to their bank. The bank will then calculate and deduct the appropriate tax, meaning the senior citizen will not need to file a return themselves. There is no specific income ceiling limit for this exemption.

P.SHANGAR

P.SHANGAR (Querist)
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16 July 2021 KIND ATTN. SIR

AN ASSESSEE IS HAVING AN INCOME OF RS.10 LAKHS FOR THE FY 2021-22 AND HIS AGE IS 75 YEARS OLD , WHETHER HE IS EXEMPT FROM FILING OF INCOME RETURN U/S 194P. KINDLY CLARIFY WHETHER THERE IS ANY CEILING LIMIT FOR CLAIMING EXEMPTION U/S 194 P

Deepa B

Deepa B (Expert)
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16 July 2021 Yes. A resident assessee aged 75 yrs or more, having only pension income and interest income from bank can avail benefit of Section 194P and need not file the income tax return. Subject to the condition that he/she furnishes declaration with the specified bank who would calculate and deduct tax accordingly. There is no ceiling limit prescribed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 July 2021 No ceiling limit.

TDS under section 194P is deductible only in the case of the ‘specified senior citizen’.
The specified senior citizen is required to submit a declaration containing income details.
Based on the declaration, the specified bank will-
Compute the total income of the specified senior citizen after giving the effect of deduction available under section 80C to section 80U and rebate admissible under section 87A of the Income Tax Act; and
Deduct appropriate income tax on such total income of the specified senior citizen.
Benefit available to specified senior citizen under section 194P
Once the tax is deducted by the specified bank under section 194P, the provisions of section 139 will not apply to the senior citizen.

In nut-shell, such senior citizens are not required to furnish their income tax return.

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