Senior Citizen above 75 years exempted from filing ITR

The BuyT Desk

In the 75th year of our Independence, the senior citizens above the age of 75 have got a special gift from the Union Budget. The Finance Minister Nirmala Sitharaman announced in her budget speech, “In the 75th year of Independence of our country, we shall reduce the compliance burden on senior citizens. For senior citizens who only have a pension and interest income, I propose exemption of filing of income tax returns. Senior citizens above 75 years of age, with only interest income, will not have to file income tax returns.”

Senior citizens must meet certain conditions.

Senior citizens are not exempted from paying tax but are only exempted from filing the income tax return. But they must fulfil the following condition-

A person availing this benefit must be a resident of India, and his/her age should be either 75 or more during the previous year.
The Senior Citizen’s source of income should be only through pension and interest income. The interest must accrue in the same bank where one is receiving the pension.
Senior citizens who have received income from rent, dividend or capital gains /losses will not get an exemption from filing the ITR.

Who will deduct the income tax?

The specified banks by the central government will be calculating and deducting the income tax.
He/ she will have to furnish a declaration to the specified bank. The declaration will have all the details about income.
Once the declaration is given, the specified bank will compute the income after taking all the allowed deduction and rebate into consideration. The section 80C and section 87 A rebate for the relevant year will be factored in.