Finance Ministry tweeted

The Finance Ministry said in its official tweet on Thursday that senior citizens above 75 years of age who have only bank pension account and interest on bank account as their only source of income, now they do not need to file ITR. For this, a new section Section 194-P has been included in the Income Tax Act-1961. This section is applicable from April, 2021. Some rules have been amended regarding this and banks have been informed about it.

What is amendment

According to the Central Board of Direct Taxes, this section has been operationalised. For this, a notification has been issued regarding the related forms and conditions. Along with this, necessary amendments have also been made in Rule 31, Rule 31A, Form 16 and 24Q.

Relief for Senior Citizens!

Section 194P inserted in IT Act, 1961 exempting senior citizens above 75 years of age, having only pension & interest income, from filing ITR. Specified banks & relevant forms notified.#PromisesDelivered pic.twitter.com/KHQOIyQabr

— Ministry of Finance (@FinMinIndia) January 5, 2023

What did the finance minister say

Finance Minister Nirmala Sitharaman had said, “Now that we are in the 75th year of our country’s Independence Day, we will continue our journey with enthusiasm. We will reduce the burden of tax compliance on senior citizens above 75 years of age in the country. For such senior citizens whose income comes from pension and interest, we propose that they should be exempted from filing Income Tax Return. The bank in which they have an account That bank will deduct the tax that is due on their income.

The post ITR filing 2023: These senior citizens do not have to file income tax returns first appeared on Rightsofemployees.com.

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.

The post Income Tax: Good news for taxpayers! Government’s gift to senior citizens before the budget, returns will not have to be filed! first appeared on Rightsofemployees.com.