Income Tax News: For a considerable amount of time, the Income Tax Department has been advising taxpayers to file their ITRs by the deadline. However, did you know that some individuals are exempt from filing income tax returns? For this group, the government has established an exemption. Let us tell you that who qualifies for this particular exemption and under what circumstances.
Exemption for Senior Citizens
For many senior citizens, filing an ITR is not required by Income Tax regulations. even if they make more than Rs 5 lakh a year. However, the Income Tax Department has also imposed certain rules or requirements in relation to this. For instance, this exemption is available to those who, as of March 31, 2023, will have reached the age of 75. In addition to this, there are certain other regulations that apply in this context; senior citizens who abide by them receive this relief.
Exemption for Pension-Reliant Individuals
Individuals who have reached the age of 75 and solely rely on their pension have been retained in the exempt category and are not required to file this ITR. According to the regulations, their pension and interest from bank deposits should be their main sources of income. In addition, the government has to notify the bank that receives the pension. People over 75 years of age received this relief in 2021 from the government under a new rule. The Finance Act of 2021 exempts senior citizens over 75 who receive pensions and bank deposit interest from filing individual tax returns (ITRs) by adding a new section 194-P to the Income Tax Act of 1961.
Declaration Process Through Bank
Under this regulation, an individual must make a declaration through their bank in order to be exempt from filing an Income Tax Return (ITR). Actually, the 12-BBA form must be filled out and submitted to the bank by a citizen who is 75 years of age or older. You must provide information on interest income from investments, including FDs and pension plans, in this form. Additionally, the tax that is included in the data provided on the form needs to be deposited into the bank. After the tax is deposited, the ITR will be deemed completed. There won’t be a need to file an additional ITR after this.
Data Sharing by Income Tax Department
The Income Tax Department has shared the data from the ITRs that have been filed thus far. Data released by the department indicates that by July 30, 2023, over 6 crore taxpayers nationwide had submitted their returns. If you do not fall into this category and have not yet submitted your ITR for the fiscal year 2022–2023, get started on this task right now to avoid any delays. It’s not like you won’t have the opportunity to file your ITR if you don’t submit it by the Income Tax Department’s deadline of July 31, 2023. The department will give such taxpayers an opportunity, but they might have to incur financial loss. Although there is a penalty associated with filing an ITR after the deadline of December 31, 2023, it is advisable to take action now to avoid this.
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