Section 194P- No Need to File ITR to Senior Citizen

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Section 194P inserted via Finance Act, 2021 which provides conditional relaxation to senior citizens ( whose age 75 is years or more ) are exempted from filing of the income tax return.

What is Section 194P?

As per Section 194P – A senior citizen is not liable to furnish the return of income for the previous year in which tax has been deducted under section 194P.


What are the conditions?

No requirement to file a return of income by the senior citizen if:

a) His total income consists only income in the nature of pension and interest received or receivable from any account maintained with Deductor (such bank);

And

b) Tax on such income is deducted by Deductor on the basis of rates in force.


Resident Senior Citizens

Resident Senior citizens (whose age is 75 years or more)


General FAQs

I’m 60 years old do I need to file the income tax return?

Yes, you need to file your income tax return as the conditions prescribed under section 194P are not satisfied.
The conditions are:

a) His total income consists only income in the nature of pension and interest received or receivable from any account maintained with Deductor (such bank);

AND


b) Tax on such income is deducted by Deductor on the basis of rates in force.

AND

Resident Senior citizens (whose age is 75 years or more)

I’m 75 years old and I have pension and bank interest income only, do I need to file Income Tax Return?

You need not file an Income Tax Return provided that the bank has deducted TDS under section 194P.

What are the benefits available to senior citizens in respect of Interest on deposits?

​​​​​​​Section 80TTB ​of the Income Tax law gives provisions relating to tax benefits available on account of interest income from deposits with banks or post office or co-operative banks of an amount upto Rs. 50,000 earned by the senior citizen (i.e., an individual of the age of 60 years or above). Interest earned on saving deposits and fixed deposit, both shall be eligible for deduction under this provision.

​ Section 194A of the Income Tax law gives corresponding provisions that no tax shall be deducted at source from payment of interest by bank or post-office or co-operative bank to a senior citizen up to Rs. 50,000. Therefore limit is to be computed for every bank individually.

When the person will become senior citizen under the Income Tax Act?

it is very important to know that the tax benefits offered under the Income-tax Law to a senior citizen/very senior citizen are available only to resident senior citizen and resident very senior citizens. In other words, these benefits are not available to a non-resident even though he may be of higher age.

Senior citizen:
Must be of the age of 60 years or above but less than 80 years at any time during the respective year.

Must be resident

Very senior citizen:
Must be of the age of 80 years or above at any time during the respective year.

Must be resident

Income Tax India

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