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Even after the new exemption, will file ITR for older people above 75 years of age?

Even after the new exemption, will file ITR for older people above 75 years of age?

 


Finance Minister Nirmala Sitharaman has announced a waiver in the Union Budget 2021 for the elderly aged above 75 years from filing income tax returns. This announcement sounds good, but if you look at the conditions related to it, it would be better to continue filing returns to the income taxpayer.

 

Actually, Finance Minister Nirmala Sitharaman had said in the budget speech that we are going to reduce the burden of legal troubles on the elderly aged 75 years or less. The central government will exempt senior citizens who have income only from pension and interest, from filing income tax. The paying banks of these senior citizens or the taxpayer will deduct the tax levied on their income. Experts say the announcement by the Finance Minister does not mean that 75 cross-aged elders earning pension and interest will not have to pay tax. They are exempted only from filing returns and tax will be deducted by their paying bank. That is, they will not need to pay a separate tax on their income.

 

These exemptions will apply with the following conditions

 

 

  • The pension or interest should be the only means of earning a senior citizen or taxpayer. If there is any other source, the tax has to be paid separately, and filing ITR will not be exempt.

 

  • The pension account and bank fixed deposit should be in the same bank so that tax deduction at the source can be done easily.

 

  • Senior citizens holding fixed deposits in two or more banks will not be exempt from filing returns. If senior citizens taxpayer is earning from post office deposits or other budget schemes, then he also has to file returns.

 

  • Those who earn income from mutual funds, shares, insurance plans, and debt options will not get an exemption from ITR.

 

  • If more tax is accumulated, then ITR will have to be filed for a refund. The government believes that if a citizen can manage more than one account, then he can also fill the returns.

 

Experts say that this issue still needs further clarification from the Income Tax Department. From the budget announcements, it seems that bank account, deposit account, and pension account should be in the same account to get an exemption from returns. In such a situation, it would be better for the elderly with income above 75 years to keep filing their returns.


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