The Income Tax Department allows senior citizens above a certain age to not file an income tax return provided they meet specific conditions under the Income Tax Act, 1961. The Income Tax Return (ITR) filing season has come, and the government has made some changes in the Excel utilities of certain ITR forms.
If there are any elderly members in your family who are 75 years of age or above, and their income is limited only to pension and interest from the same bank where they get pension, then there is a relief news for them. Through section 194P added to the Income Tax Act under the Finance Act 2021, such senior citizens have been exempted from filing ITR. This provision is effective from 1 April 2021.
The purpose of section 194P is to provide relief to those senior citizens whose income is limited and who feel unable or uncomfortable to go through the complex process of filing tax. But to get its benefit, some important conditions have to be fulfilled. The first condition is that their age should be 75 years or above and they should be a resident of India. The second condition is that their entire income should be limited only to pension and interest from the bank from which they receive pension. Also, that bank should be in the category of ‘Specified Bank’ notified by the government.
Also read: ITR filing 2025: 5 must-do things before filing ITR online
Senior citizens must submit a declaration form
To avail this facility, senior citizens have to submit a declaration form (Form 12BBA) to the concerned bank. In this form, they have to provide their PAN number, Pension Payment Order (PPO) number, total income details, section under which deduction has been taken, information about exemption under section 87A, and confirm that their income is limited to pension and interest only. Also, it is necessary to give the name of the bank and the pension-paying employer.
Once the senior citizen gives this declaration to the bank, the bank calculates their total income (pension and interest). After this, it calculates the tax by taking into account all the exemptions and deductions mentioned under the Income Tax Act (such as sections 80C to 80U and 87A) and deducts TDS accordingly. After this, senior citizens do not need to file ITR.
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