Seniors over 75 years of age whose pension income is only exempt from filing tax returns
Finance Minister Nirmala Sitharaman said on Monday that seniors over 75 years old with only pension income are now exempt from filing income tax returns. The bank paying them income will deduct the required tax from their bank account. This came after changes to tax law were announced in the 2018 budget to give senior citizens more tax benefits. These included tax benefits such as the introduction of a new section 80TTB in the Income Tax Act of 1961, the deduction for medical expenses in the absence of health insurance, etc.
Pursuant to Section 80TTB, seniors can claim up to Rs 50,000 in interest income from banks and post offices as a deduction from their income, effectively making this type of interest income tax free up to Rs 50,000 for seniors.
Previously, seniors were entitled to a similar tax exemption on interest income from bank and postal savings accounts, but only up to Rs 10,000 under Section 80TTA. The Rs 50,000 deduction was the largest tax relief announced in the 2018 budget for most seniors as they earn most of their income from interest from FDs from banks and post offices. At the same time, the TDS limit for fixed-term deposit rates for senior citizens was raised.
The number of income tax returns increased from 3.31 crore in 2014 to 6.48 crore in 2020, said the finance minister.
Sitharaman presented the Union budget for 2021-22 on Monday, which was approved today by the Union Cabinet headed by Prime Minister Narendra Modi.
Sitharaman, who in her first budget in 2019 had replaced the leather briefcase that had been used for decades to carry budget documents with a traditional red cloth “Bahi-Khata”, had stated earlier this month that the budget for the im The financial year beginning April will be “like never before”.
It has to be a vision, a roadmap, to get the world’s fastest growing large economy back on track.
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