conditions for exemption under section 194P - Senior citizens should be of age 75 years or above. - Senior citizens should be ‘Resident’ in the previous year. - He has pension income and interest income only. Interest income accrued/earned from the same specified bank in which he is receiving his pension. - The senior citizen will submit a declaration containing some details (mentioned below) to the specified bank. - The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens. Filing of a declaration by a senior citizen The specified bank as mentioned above shall deduct TDS on the basis of a declaration submitted by the senior citizen to the bank. The declaration should contain the below-mentioned details : - Total income of the senior citizen - Deductions availed under Section 80C to 80U - Rebate available under section 87A - Confirmation from the senior citizen of having only pension and interest income How will the taxable income be calculated under the new section? A senior citizen must submit a declaration using Form No. 12BBA. Once the older citizen has filed the declaration, the bank will compute the gross total income (pension plus interest income). To calculate net taxable income, the bank will also consider the deductions, tax exemptions, and rebates available to elderly citizens under Section 87A. After deducting deductions and rebates, the bank would now deduct TDS for older persons. The bank will request proof of deductions and tax exemptions that the senior person is entitled to when filing the declaration. If they choose the previous income tax regime, this will be required. If the older citizen chooses the new income tax regime, no investment proof will be required. Benefits to senior citizens under 194P Once the specified bank as mentioned above deducts TDS under section 194P, 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. KR IRS 12 12 23 -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/thatha_patty/CAL5XZopHGC84Xs8ktN2vUHaEuaHnrudAdwTOOc%3DJRV6695OjKg%40mail.gmail.com.
