Senior citizen for income tax purposes:
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes.
A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
Provisions under Income Tax Act:
Section 194P of the Income Tax Act, 1961 provides conditions for exempting Sen ior Citizens from filing income tax returns aged 75 years and above. Section 194P is applicable from 1st April 2021.
Conditions for ITR filing exemption:
- The senior citizen is a resident in India and is 75 years old or more during the previous year
- He has pension income and no other income. However, in addition to such pension income, he may also have interest income from the same bank in which he is receiving his pension income,
- The bank, in which pension and interest income is received, is a specified bank as notified by the government.
- He shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.
Declaration:
Specified Bank:
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Frequently Asked Questions
Who is exempted from ITR filing?
Senior citizens aged 75 years or more having pension income and interest income from the same bank where such pension income is received, not having any other income other than the mentioned 2 income are exempted from filing income tax returns upon submission of declaration in Form 12BBA to the bank.
Which tax regime will be applied while deducting TDS u/s 194P?
Once the taxpayer has filed the declaration, the bank calculates net taxable income after considering the deductions, tax exemptions, and rebates available to elderly citizens under Section 87A, then applies the beneficial tax regime to the taxpayer to arrive at the TDS to be made u/s 194P.
What are the deductions limit u/s 80C and 80D for Senior citizens?
| Sections | Eligible investments for tax deductions | Maximum Deduction |
| 80C | Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc. | Rs 1,50,000 |
| 80D | For the policy taken for Self & Family + Parents (above 60 years) | Rs 1,00,000 |
What is Form 15H for senior citizens?
Form 15H are self-declaration form that an individual submits to the payer requesting not to deduct TDS on the income as their income is below the basic exemption limit.
For this, providing PAN is compulsory. Some banks allow you to submit these forms online through the bank’s website.
What is the age limit for 194P?
Relaxation from filing the ITR is available to resident senior citizens aged 75 years or older.
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