Revenue Tax: Are You Senior or Tremendous Senior? Know the advantages which might be being provided to you

Every employed person is subject to income tax according to the income tax assessment. Certain exemptions are also granted by the government from the tax. Seniors and senior / super seniors are granted a higher exemption limit compared to normal taxpayers.

The tax exemption limit for the 2021-22 assessment year available to a resident senior is 3,000,000 rupees, while for non-senior citizens it is 2,50,000 rupees. A very elderly citizen is granted a higher exemption limit compared to others. The exemption limit for the assessment year 2021-22, which is available to a resident very old person, is 5,000 rupees.

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Taxpayers can note that the exemption limit is the amount of income up to which a person is not taxable.

It is very important to know that the tax benefits of the Income Tax Act for a senior / very old person are only available for resident senior citizens and resident very old people. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

A senior must be at least 60 years old, but less than 80 years old at any point in the year, to qualify as a senior. In order to be considered very old, the person must be at least 80 years old at any time in the respective year.

Benefits according to the income tax law for senior citizens:

1. E-filing of the income tax return: From the tax year 2019-20 onwards, a very old person who submits their income statement using the ITR 1/4 form can submit their income statement in paper form, i.e. submitting ITR 1/4 (possibly be) is not mandatory for them. However, they can opt for electronic filing if they so choose.

2. Input tax: Pursuant to Section 208, anyone whose estimated tax liability for the year is Rs 10,000 or more will be required to pay their tax upfront, in the form of an “advance tax”. Section 207, however, exempts a resident senior citizen from paying input tax.

According to Section 207, a resident senior citizen (a natural person who has reached the age of 60 in the relevant financial year) without income from commercial or freelance work is not subject to input tax deduction. ? ? ? ? ? ? ? ? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ?????????????????????????????????????????????????? ??????????????????.

3. Interest on deposits:Section 80TTB of the Income Tax Act contains provisions on tax relief based on interest income on deposits with banks or post office or credit unions of up to Rs. 50,000 earned by the senior. Interest income from savings deposits and time deposits are both deductible under this provision.

Section 194A of the Income Tax Act provides similar provisions that no withholding tax may be deducted from the payment of interest by a bank, post office or credit union to a senior citizen up to 50,000 rupees. Therefore, the limit has to be calculated individually for each bank.

4th Submission of the income tax return (ITR): The 1961 Income Tax Act does not provide an exemption for the elderly or the very old from filing an income statement. However, in order to relieve seniors (from the age of 75 years) and to reduce the compliance burden for them, a new section 194P was inserted in the Finance Act 2021.

This provision obliges a banking company to deduct taxes under this provision if the recipient has an account with it on which he draws his pension income. The withholding tax is required under this new regulation if the recipient is a resident natural person who is 75 years of age or older at any point in the year and the following conditions are met:? ? ? ? ? ? ? ??????????????????????????????????????? the A?”??

a) The total income of the person entitled to deduction consists only of income in the form of pensions and interest that is received or due from an account with the person entitled to deduct (this bank).

b) The taxpayer has provided the taxpayer with a declaration with the required information.

If the above conditions are met, the deductible calculates the deductible’s income after applying the allowable deduction under Chapter VI-A and the discount under Section 87A. Taxes on this income must be deducted based on the applicable rates.

If the senior citizen’s income is taxed, he is not obliged to reimburse the income statement for the previous year in which the taxation occurred. ? ? ? ? ? ? ? ? ? ?