Finance Act 2021 inserted a new section 194P which provided conditional relief to senior citizens for exempting from filing income tax returns aged 75 years and above. New Section 194P will become applicable from 1st April 2021Section 139 of the Income Tax Act governs the filing of income tax returns by every individual with income above the basic exemption limit.
Conditions for exemption are: Senior Citizen should be of age 75 years or above. Senior Citizen should be ‘Resident’ in the previous year.
He must have pension income and interest income from a bank account (savings or deposits) only. Interest income must be accrued/earned from the same bank in which he is receiving his pension.
he senior citizen will submit a declaration containing some details (mentioned below) to the bank.U
1 . PAN and Pension Payment Order (PPO) Number
2. Total income of the senior citizen
3. Deductions availed under Section 80C to 80U
4. Rebate available under section 87A
5. Confirmation from the senior citizen of having only pension and interest income
Benefits to Senior Citizens Under 194P
Then the provisions of section 139 (return filing) will not apply to senior citizens aged 75 years and above. This means that if the specified bank deducts TDS under this section, then the senior citizen need not file their ITR. This will be a relief for such taxpayers.
Declaration Format for Senior Citizen- Form 12BBA
“Form no. 12BBA
(see rule 26D)
Declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P
(1) Name and address of the person :
(2) PAN or Aadhaar :
(3) Previous Year :
(4) Date of Birth :
(5) Name of the Specified Bank :
(6) Name of Employer from which pension is drawn :
(7) Pension Payment Order (PPO) Number :
Verification
I, ………….. son/daughter of …………………. do hereby certify that the information given above is complete and correct
and that I do not have any income other than the income of the nature of pension and/or interest which is received or
receivable only in the account(s) of the specified bank stated above
Date …………………………
Place ………………………
(Signature of person)
Full Name: …………………. .”;