ITR Exemption: No More Hassle of Filing Income Tax Returns! Fill This One Form to Get Exemption
ITR Exemption: The Government of India has introduced a significant change in the Income Tax Act for the convenience of senior citizens. According to the new rule, certain citizens aged 75 years or more will no longer have to file Income Tax Returns (ITR). The goal of this step is to simplify the income tax process for the elderly and reduce their burden. Let’s delve into the details of this new rule and its benefits.
Who is eligible for this exemption?
The central government has provided relief in the rules for filing income tax returns for senior citizens. However, not everyone will receive this benefit. Only citizens over the age of 75 who meet specific conditions will be covered by this exemption. The conditions are:
- Age: The citizen’s age must be 75 years or more.
- Source of Income: Income must be solely from pension and interest.
- Bank Account: Both pension and interest income must come from the same bank account. This means the exemption is only available if the bank that credits the pension also holds the fixed deposit or other savings from which interest is earned.
When is this exemption not available?
In some cases, this exemption will not be available even for individuals over 75 years of age. These are:
- If pension and interest income are received from different banks.
- If there is income from any source other than pension and interest, such as house rent, capital gains, business, or other professional income.
- If the source of income involves multiple banks or financial institutions.
How will the process work?
Senior citizens who are eligible for this exemption must follow a simple process instead of filing an income tax return.
- Submission of Form 12BBA: Eligible senior citizens must visit their bank to fill out and submit Form 12BBA. This form will contain all the details of their income from pension and interest.
- Bank’s Responsibility: Upon receiving the form, the bank will calculate the customer’s total income. It will then determine the total taxable income after considering all applicable deductions and rebates under sections 80C to 80U of the Income Tax Act.
- Tax Deduction: The bank will deduct the necessary tax (TDS) and deposit it with the government. Once the bank completes this process, the senior citizen will no longer need to file a separate income tax return.
What is the reason for this step?
The main objective of this government initiative is to make life easier for senior citizens. For many elderly individuals, the process of filing income tax returns online is complex and time-consuming. They often require the help of tax consultants or others. With this new rule, those whose income is solely from pension and interest will no longer have to go through this hassle. The bank will handle the entire process on their behalf, which is a great relief for them. This exemption is a gesture of respect towards senior citizens and an effort to simplify their lives.
