Senior residents will not be routinely exempt from submitting Income-tax return (ITR) in India. Senior residents, who’re Indian residents and have taxable revenue exceeding the required restrict are required to file an ITR.
What Is an Income Tax Return?
In India, an revenue tax return (ITR) is a kind that people, firms, and organisations file with the Income Tax Department to report their revenue, deductions, and taxes paid for a particular monetary yr. The Income Tax Act, 1961, mandates the submitting of ITRs by people whose gross whole revenue exceeds the essential exemption restrict or who wish to declare a refund of any taxes paid.
Filing ITR is a vital compliance requirement for people and organisations in India. It helps the federal government maintain observe of taxpayers’ revenue and ensures that they pay the right amount of tax.
Who Is A Senior Citizen And Super Senior Citizen?
An particular person resident who’s 60 years or above in age however lower than 80 years at any time through the earlier yr is taken into account as Senior Citizen for Income Tax functions. A Super Senior Citizen is a person resident who’s 80 years or above, at any time through the earlier yr.
Income Tax Return For Senior And Super Senior Citizens
​Is A Senior Citizen Exempted From Filing Income Tax Return (ITR)?
Income-tax Act, 1961 offers no exemption to senior residents or very senior residents from submitting a return of revenue. However, to supply aid to the senior residents (whose age is 75 years or extra) and to scale back the compliance burden on them, the Finance Act, 2021, has inserted part 194P.
This provision requires a banking firm to deduct tax below this provision if the deductee is sustaining an account with it by which he’s receiving his pension revenue. The tax is required to be deducted below this new provision if the recipient is a resident particular person whose age is 75 years or extra at any time through the yr and the next situations are fulfilled:
- Total Income of the deductee consists solely revenue within the nature of pension and curiosity acquired or receivable from any account maintained with deductor (such financial institution)
- Deductee has furnished a declaration to the deductor containing prescribed particulars.
If the above situations are happy, the deductor shall compute the revenue of the deductee after giving impact to the deduction allowable below Chapter VI-A and rebate below part 87A. Tax on such revenue is required to be deducted on the premise of charges in power.
If tax is deducted from the revenue of such senior-citizen, he/she shall not be liable to furnish the return of revenue for the earlier yr by which tax has been deducted.
What Are The Benefits Available To Senior And Super Senior Citizens In Tax Tates?
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Senior residents and a tremendous senior residents are granted the next exemption restrict as in comparison with regular tax payers. Exemption restrict is the quantum of revenue as much as which an individual is just not liable to pay tax. The exemption restrict granted to senior citizen and tremendous senior citizen for the monetary yr 2022-23 is as follows :
Senior citizen
A senior citizen is granted the next exemption restrict in comparison with non-senior residents. The exemption restrict for the monetary yr 2022-23 out there to a resident senior citizen is Rs. 3,00,000. The exemption restrict for non-senior residents is Rs. 2,50,000.
Super senior citizen
The exemption restrict for the monetary yr 2022-23 out there to a resident tremendous senior citizen is Rs. 5,00,000.
However, a rebate of as much as Rs 12,500 below part 87A is on the market within the new tax regime if the revenue is just not greater than Rs 5 lakhs. This rebate is on the market to solely resident people. Taxpayers similar to NRIs, Hindu Undivided Family and corporations will not be granted rebate below this part.
Is A Very Senior Citizen Granted Exemption From E-Filing Of Income Tax Return?
A really senior citizen submitting his return of revenue in Form ITR 1/4 can file his return of revenue in paper mode, i.e., for him e submitting of ITR 1/4 (because the case could also be) is just not necessary. However, he/she could go for e-filing if he needs.
Is A Resident Senior Citizen Exempted From Payment Of Advance Tax?
​​​​​​​​As per part 208, each particular person whose estimated tax legal responsibility for the yr is Rs. 10,000 or extra, shall pay his tax upfront, within the type of ‘advance tax’. However, part 207 offers aid from cost of advance tax to a resident senior citizen.
As per part 207​ a resident senior citizen (i.e., a person of the age of 60 years or above through the related monetary yr) not having any revenue from enterprise or occupation, is just not liable to pay advance tax.
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