Senior Citizens are not automatically relieved from filing ITR or income tax returns. They will have to file ITR if their table income exceeds the specified limit of the Income Tax Department.
What is Income Tax Return or ITR?
As per Indian taxation laws, an Income Tax Return is a form, crafted by the Income Tax Department, used to disclose your net income, expenses, assets, losses and tax liabilities to the Government authorities. As per the Income Tax Act, of 1961, the earning individuals whose income exceeds the basic exemption limit set by the government have to file ITRs. So, Income Tax Filing is an essential process to be completed by individuals and business organisations in India, so that the government can keep track of their income sources and ensure accurate collection of taxes.
Definition of Senior and Super Senior Citizens for Income Tax Return
An individual whose age is 60 years or above but below 80 years will be referred to as a senior citizen for Income Tax purposes. Whereas, a person who is aged above 80 years will be considered a super senior citizen in the eyes of the income tax department.
Do Senior Citizens Are Not Required to File Income Tax Returns?
“Income-tax Act, 1961 provides no exemption to senior citizens or very senior citizens from filing a return of income. However, to provide relief to senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Act, 2021, has inserted section 194P.
This provision requires a banking company to deduct tax under this provision if the deductee is maintaining an account with it in which he is receiving his pension income.”
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What Benefits Do Senior and Super Senior Citizens Get in Tax Rates?
Senior and Super Senior Citizens are granted higher exemption limits in comparison to a normal taxpayer. The exemption limit is the value till which the taxpayers are not liable to pay taxes.
For Senior Citizens:
“A senior citizen is granted a higher exemption limit compared to non-senior citizens. The exemption limit for the financial year 2022-23 available to a resident senior citizen is Rs. 3,00,000. The exemption limit for non-senior citizens is Rs. 2,50,000.”
For Super Senior Citizen:
“The exemption limit for the financial year 2022-23 available to a resident super senior citizen is Rs. 5,00,000.”
“However, a rebate of up to Rs 12,500 under section 87A is available in the new tax regime if the income is not more than Rs 5 lakhs. This rebate is available to only resident individuals. Taxpayers such as NRIs, Hindu Undivided Family and firms are not granted rebates under this section.”