New rule of Income Tax Return: Senior citizens don’t need to file ITR due to some conditions
The new relaxation was declared by finance minister Nirmala Sitharaman during the Union Budget 2020-2021
People who are above the age of 75 years, who have pension and interest as a source of income, will be exempted from filing the ITR, income tax returns for the fiscal year 2021-22. The Central Board of Direct Taxes has informed rules and declaration forms which the citizens would have to file with the specific bank. The banks would have to debit tax on pension and interest income and deposit with the government.
This relaxation was told by finance minister Nirmala Sitharaman during the Union Budget 2021. The government shall reduce the compliance burden on senior citizens who are above the age of 75 years, in the 75th year of Independence of our country.
For the senior citizens who get pension and have interest income, I purpose exemption from filing their income tax returns. The bank would reduce the necessary tax on their income, said the finance minister.
Banks will remove the income tax which he has to pay and deposit it to the government. The rule is that the person must have a pension and interest from a fixed deposit should result in the same bank.