ITR filing: All taxpayers of India need to file their Income Tax Returns (ITR) for financial year 2022-23 on or before July 31. However, there are some relaxations in place for individual residents who are 60 years or above in age. For ITR filing purposes, citizens between the age of 60-80 years are categorised as ‘Senior Citizens’, while those older than 80 years are considered ‘Super Senior Citizen’. Under Section 194P of the Income Tax Act, 1961, there are certain conditions that exempt some senior citizens and super senior citizens from filing ITR.
Section 194P is applicable from 1st April 2021.
Conditions for exemption are:
Senior citizen should be of age 75 years or above.
They should be ‘Resident’ in the previous year.
Senior citizen has pension income and interest income only & interest income accrued/earned from the same specified bank in which he is receiving his pension.
The senior citizen will submit a declaration to the specified bank.
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Senior and Super Senior Citizens can opt for the Old Tax Regime or the New Tax Regime with a lower rate of taxation (under Section 115 BAC of the Income Tax Act).
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The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, and House Rent Allowance) available in the Old Tax Regime. Apart from this, no increased basic exemption limit benefit will be available to Senior and Super Senior Citizens in the New Tax Regime.
