Only a few days are left for the presentation of Budget 2023. Once again, discussions have started regarding the demand for exemption in income tax. People are hopeful that this time the exemption will be increased from Rs 2.5 lakh to Rs 5 lakh.
Whether this will happen or not will be known only on February 1, but before that the Government of India has given a big relief to the taxpayers. On behalf of Finance Minister Nirmala Sitharaman, this relief has been given to senior citizens above 75 years.
The Finance Ministry has tweeted from its official Twitter handle that citizens above 75 years of age who have only pension and bank interest as their source of income do not need to file income tax returns. This is expected to bring great relief to senior citizens. Actually, it becomes difficult for them to file taxes and returns. In view of this, this step of the government was very important.
Added new section
The government has added a new section in the Income Tax Act to give this exemption. In order to give relief to citizens above 75 years of age in income tax return, the Income Tax 1961 rule has been amended and a new section, Section 194-P, has been added to it. Banks have been informed about this change made by the government.
Finance Minister had announced
Finance Minister Nirmala Sitharaman had announced this last year. The Central Board of Direct Taxes (CBDT) has said that a notification regarding the new rules has been issued. Necessary changes have been made in Rule 31, Rule 31A, Form 16 and 24Q of Income Tax. As per the changes, it is not necessary for citizens above 75 years of age to file ITR. The bank in which he will have his account, that bank will automatically deduct the tax on income and file the return. For this, citizens will have to fill 12 BBA forms and submit them to their bank.
Who is getting tax exemption
now? At present, the government gives tax exemption on annual income up to Rs 2.5 lakh. However, it is also necessary for them to file income tax returns. Through this, he can claim refund on the TDS taken from him. Please tell that tax is definitely made on the income of 2.5 to 5 lakhs, but it is so less that it gets adjusted within the rebate itself.
