The financial year 2022–2023’s ITR filing deadline is July 31, 2023. People who have income that falls under a tax bracket file ITRs. The Modi administration has now provided a significant amount of relief to the populace, and some people won’t even need to file ITRs. Many folks are unsure about who they should file their ITR with.
Section 194P of the Income Tax Act of 1961,
which was enacted in Budget 2021, exempts certain senior individuals from filing income tax returns. They must, however, meet certain requirements to be eligible. Beginning on April 1, 2021, Section 194P is in effect. Senior persons 75 years of age and above are excluded from filing ITRs under Section 194P of the Income Tax Act. They must meet specific requirements to do this. These requirements include submitting a declaration form to the bank and receiving pension and interest income from specific banks. There is no need to file an ITR because the chosen bank will take the tax out for you.
Senior persons cannot file an ITR if their total income is less than the taxable limit.
However, the only way to receive a refund is by completing an ITR if any TDS was deducted from income obtained through them, such as from FD interest income. However, if the money is put in the same bank where the pension is received, they can ask the bank to take the exact TDS out of the amount, which may mean they won’t need to file their ITR because they have already given the bank a declaration. Such a bank can deduct and deposit tax on behalf of the senior person by Chapter VI-A (i.e., 80C, etc.). No one will be required to file an ITR in such a circumstance. How many senior folks are benefited from this provision is unclear, though. The Income Tax Act of 1961’s Section 194P outlines the requirements for exempting seniors 75 years of age and above from filing income tax returns.
The elderly person must be 75 years of age or older to qualify for the exemption from filing an ITR.
- The senior citizen must be an Indian “resident.”
- The older citizen only receives pension payments and interest income, both of which come from the same designated bank where the pension is received.
- A declaration must be provided to the selected bank by the senior.
- The bank has been designated as a “Specialised Bank” by the Central Government. After taking into account the deduction under Chapter VI-A and the exemption under Section 87A, such banks will be in charge of deducting TDS from elderly persons.
- There will be no need for the senior to submit any additional paperwork once the approved bank has deducted the tax for seniors over 75.
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