Finance act 2021 has newly introduced new section 194P which is specially made for the senior citizen of the countries, who are 75 years or older than 75 years and it has applicable from the date of 01/April/2021
As we all get to introduced with the new budge in the year 2021 and there were lots of new changes were introduced and one of those was section 194P in which the government has given the conditional relief to the senior citizens in the income tax returns.
However the condition was also existed if while filing of the income tax return and those conditions are given followings and those conditions should be fulfilled to claim the exemption.
• The senior citizen should be 75 years old or the greater than 75
• He should have the pension income only not other source of income should have and also the interest income from the pension. And the interest income must have to be into the same bank account in which pension income are receiving.
• The bank in which pension income are receiving they must have to be notified by the central government because such bank are responsible for the deduction of TDS after considering the deduction under chapter VI-A.
• The senior citizen must have to be resident of India in the previous year.
• The senior citizen must have to submit a declaration containing few details to the specified bank in which they are getting the pension income are given below.
The declaration filing to the bank by senior citizen.
The specified banks are responsible to deduct the TDS on the income of pension and the TDS will be deduct on the basis of the declaration submitted by the senior citizen to the bank so that they can take help to deduct TDS on the basis of that.
The declaration should be containing these following documents.
- Deduction availed under section 80C to 80U.
- Rebate availed under section 87A.
- Total income of the senior citizen.
- Confirmation from the senior citizen about that they have just one pension income.
Benefits of being senior citizen under section-194P
If the specified bank once mentioned above deducts TDS under section 194P. The provision of section 139 will not be applicable to the aged 75 senior citizen it means if the bank deducts TDS of the senior citizen then they don’t need to file the income tax return.