Winning Bizness Desk
Mumbai. Before the budget, the Union Government gave a big gift to the senior citizens. In a tweet from the official Twitter handle of the Ministry of Finance, it has said that senior citizens above 75 years of age, who have only pension and bank interest as their source of income, will get the benefit of this relief. Under this relief, they will no longer need to file income tax. Before Budget 2023, there is a lot of talk about income tax relief. Employed people are sitting expecting relief in income tax. Amidst all this, the Finance Ministry has given relief to senior citizens. The benefit of this exemption will be given to those people who have pension as income or interest received from banks.
For this, the government added a new section in the income tax. In order to provide income tax relief to senior citizens above 75 years, a new section Section 194-P has been added to it by amending the rules of Income Tax 1961. Banks have been informed about the amendments made to its rules.The Central Board of Direct Taxes (CBDT) has said that now this section has been made operational. All related forms and conditions have been notified. Necessary changes have also been made in Rule 31, Rule 31A, Form 16 and 24Q of Income Tax. Significantly, the Finance Minister had announced this in the Budget 2022-23.
Banks will deduct whatever tax payable
Accordingly, senior citizens have been kept out of the purview of filing income tax returns. After this tax exemption, these senior citizens above 75 years of age will not need to file income tax returns. The bank in which he will have his account, the same bank will deduct whatever tax is made on his income. To avail exemption from filing income tax return, senior citizens have to fill 12 BBA forms and submit them to their bank.