Income Tax News: Saving Bonanza! Essential Rules for ITR Filing You Should Know to Save Big on Taxes

Income Tax News: Senior and super senior persons should be aware of the unique regulations and privileges that they are entitled to under the Income Tax Act of 1961 as the deadline for submitting income tax returns draws near. Tax savings can be achieved using these measures. Senior citizen-specific income tax return (ITR) forms, as well as a range of advantages and exemptions, are available from the income tax department.

Income Tax Rules and Benefits for Senior Citizens

Special ITR Forms for Senior Citizens

Senior citizens must file ITR forms based on their income sources:

• Pensioners: Use Sahaj (ITR 1) for tax filing.
• Income from Assets, Other Sources, or Capital Gains: Opt for ITR-2.
• Pensioners with Business Income: File taxes using ITR-3 or ITR-4.

Basic Exemption Limits

• Senior Citizens (60-79 years): Basic exemption limit is Rs 3 lakh.
• Super Senior Citizens (80 years and above): Basic exemption limit is Rs 5 lakh.
• New Tax Regime (Section 115BAC): Basic exemption limit remains Rs 3 lakh, regardless of age.

Tax Rates

• Income Up to Rs 3 Lakh: No tax.
• Income Above Rs 10 Lakh: Taxed at 30%.

Key Documents for Senior Citizens

Form 16

Senior citizens receiving a pension must obtain Form 16 from their employer. This form details salary components and tax deducted at source (TDS).

Form 26AS

All senior citizens should review Form 26AS, which contains comprehensive tax details, including TDS.

Important Deductions for Senior Citizens

Section 80C Deductions

Senior citizen savings schemes qualify for Section 80C deductions, encouraging investment and savings.

Section 80TTB

This section allows a deduction of up to Rs 50,000 on interest income from bank accounts. Note that this benefit is not available under the new tax regime.

TDS and Form 15H

Banks typically deduct TDS when a senior citizen's interest income exceeds Rs 50,000 in a financial year. However, senior citizens can prevent TDS deduction if their total income is below the taxable limit by submitting Form 15H to their banks. Keeping Form 15H handy during ITR filing can streamline the process.

Keep watching our  Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER