Skip to main content

ITR Filing Exemption for Senior Citizens under Section 194P

Image
By Arpit Kulshrestha

ITR Filing Exemption Senior Citizens U/S 194P

This year the senior citizens of age over 75 years and above would not need to furnish their ITR as announced in budget 2021. The government inserted section 194P in the Income-tax Act, 1961.

As per section 194P, the senior citizens would not be needed to furnish the income tax return when they fulfil the below-mentioned criteria:
  • The senior citizen should be a resident in India and is 75 years old or more in the previous year, FY 2021-22.
  • He secures the pension income and no additional income. Subsequent to that he might pose an interest income via the same bank where he obtains his pension income.
  • The bank where the pension and the interest income would obtain would be mentioned by the government.
  • he would be needed to provide the declaration to the stipulated bank. The declaration would include particulars in the form and be validated in these ways as mentioned.
Read Also: Top Tax Benefits on Income of Super Senior Citizens in India

These individuals would come beneath the two classes who are not needed to file the taxes and the others who are needed to file the taxes. After that, the specified bank would deduct the taxes according to the details mentioned via senior citizens.

The government would provide a notification for the same dated 2nd September 2022 providing the meaning of the specified bank. According to the notification, a senior citizen would submit the declaration to any scheduled bank.

"A senior citizen who fulfils the criteria as mentioned under Section 194P will not be required to file ITR. This will be done if he/she has submitted a declaration to the bank to deduct TDS from their income in the previous financial year i.e., during FY 2021-22. If the declaration has not been submitted by the senior citizen during the last financial year, then the senior citizen will be required to file his/her ITR." the tax expert mentioned.

How Would The Taxable Income be Calculated Under The New Section 194P?

A senior citizen would be needed to file the declaration through Form no. 12BBA. Once the submission of declaration is done by the senior citizen then the bank would do the deductions, tax-exemptions, and repayment u/s 87A that a senior citizen is qualified to have the net taxable income. The bank would deduct TDS for the senior citizen's post to acknowledge the deductions and reimbursements.

On the submission of the declaration, the bank questions the senior citizen to issue the proof of deductions along with the tax exemptions for which the individual is eligible. The same would be needed when he or she chooses the old income tax regime. When the senior citizen chooses the new income tax regime, there is no need to submit investment proof.

As per a tax expert "It is important to note that once an individual submits a declaration to the bank, then he/she will not be able to change the income tax regime."

A TDS Certificate Must be Provided by The Bank

The bank would issue Form 16 towards tax deducted beneath section 194P. You must remember that it is the identical TDS certificate that is being provided through the employer to his employee towards the deducted tax on the income of the salary.

Form 16 would be edited through the income tax department in 2021. Form 16 specified the pension payment order number of the senior citizen as well as additional information such as PAN, address, and others.

Comments

Post a Comment

Popular posts from this blog

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
2 comments
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

Major Income Tax Rule Changes to Simplify Return Filing

By Arpit Kulshrestha
Income Tax Return Filing- The normal Income tax return filing due date for AY 2024-25 ended on July 31, 2024. On December 31, 2024, the due date to file a belated ITR with a penalty amount of Rs 5000 will end. The Income Tax Department after the July 31 deadline will provide different categories of taxpayers with specific deadlines to furnish income tax return filing (ITR) . For instance, the tax department has extended the ITR filing date for those who require the audit of their accounts from 31st October 2024 to 15th November 2024. Below we talk 5 amendments in the rules of the income tax concerning tax returns filing via the taxpayers. With New Form 26AS Improved Tax Transparency The introduction of the new Form 26AS furnishes the complete data to the taxpayer along with the details of tax deductions or collections at source, demands, payment of taxes, specified financial transactions (SFTs) and refunds. Also, the inclusion of SFT data assures that the taxpayers know about their tra...
Post a Comment
Read more