Returns and forms applicable to senior citizens and super senior citizens for the AY 2021-2022

Senior Citizens and Super Senior Citizens for assessment year 2021-2022

Disclaimer: The content on this page is for overview and general guidance only and is not exhaustive. Please refer to Income Tax Act, Rules and Notification for complete details and guidelines.

A resident individual who has become 60 or more but less than 80 years of age during the previous year is considered a senior citizen for income tax purposes. A very senior citizen is a resident individual who has attained the age of 80 years or more at any time in the previous year.

Note: Section 194P of the Income Tax Act, 1961 provides conditions for exemption of senior citizens of the age of 75 years and above from filing income tax return. Conditions for the discount:

  • Senior citizen age should be 75 years or above
  • Senior citizen should be a ‘resident’ in the previous year
  • The senior citizen has only pension income and interest income and interest income earned / earned from the same specified bank in which he is drawing his pension

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The new section 194P is applicable from 1st April 2021

  1. ITR-1 (Sahaj) – Applicable for Individual

This return is applicable to a person resident (other than not ordinarily resident) whose total income from the following sources is up to ₹ 50 lakh.

Salary / PensionA house propertyOther sources (interest, family pension, dividend etc.)Agricultural income up to ₹ 5,000

Note: ITR-1 cannot be used by a person who:
(a) is a director in a company
(b) any unlisted equity shares at any time during the previous year
(c) has any assets (including financial interest in any entity) located outside India
(d) has the authority to sign any account located outside India
(e) have income from any source outside India
(f) is a person in whose case tax has been deducted under section 194N
(g) The person whose case for payment or deduction of tax has been deferred on the ESOP.

2. ITR-2- Individual and HUF applicable for

This return is applicable for individual and Hindu Undivided Family (HUF).

Non-income under the head Profits or gains from business or professionWho is not eligible to file ITR-1

3. ITR-3- Individual and HUF applicable for

This return is applicable for individual and Hindu Undivided Family (HUF).

Profit or gain from business or profession being income under the headWho is not eligible to file ITR-1, 2 or 4

4. ITR-4 (Sugam) – Individual, HUF and applicable to firms (other than LLPs)

This return is applicable to an individual or Hindu Undivided Family (HUF) who is not ordinarily resident other than resident or a firm (other than LLP) which is a resident of ₹ 50 lakh and has income from business and profession computed on any presumptive basis and income from the following sources:

Salary / PensionA house propertyOther sources (interest, family pension, dividend etc.)Agricultural income up to ₹ 5,000Income from business/business is computed on presumptive basis u/s 44AD/44ADA/44AE

Note: ITR – 4 cannot be used by a person who:

(a) is a director in a company
(b) any unlisted equity shares at any time during the previous year
(c) has any assets (including financial interest in any entity) located outside India
(d) has the authority to sign any account located outside India
(e) have income from any source outside India
(f) is a person in whose case the amount of tax paid or tax deducted at ESOP has been deferred

Please note that ITR-4 (Sugam) is not mandatory. This is a simple return form to be used by the assessee at his option, if he is eligible under section 44AD, 44ADA or 44AE to declare profits and gains from business and profession on presumptive basis.

Applicable Forms

1.Form 15H – Declaration to be made by a person (who is 60 years of age or more) claiming certain receipts without deduction of tax

submitted byDetails provided in the form
A resident individual, of age 60 or above, pays TDS on interest income. may request the bank in writing not to deduct theEstimated income for the financial year

2. Form 12BB – Particulars of claims made by employee for deduction of tax (under section 192)

provided byDetails provided in the form
Employees for their employer(s)Evidence or particulars of HRA, LTC, deduction of interest on borrowed capital, tax saving claims/deduction, for the purpose of computing Deduction at Source (TDS)

3. Form 16 – Salary Details of Tax Deducted at Source (Certificate u/s 203 of Income Tax Act, 1961)

provided byDetails provided in the form
Employees for their employer(s)For the purpose of computing salary payment, deduction/exemption at source and tax deduction for the purpose of computing tax payable/refund.

4. Form 16A – TDS in addition to salary Certificate under section 203 of the Income-tax Act, 1961 for

provided byDetails provided in the form
deductor to deductorForm 16A, a certificate of tax deducted at source (TDS), issued quarterly, shows TDS. amount, nature of payment and TDS deposited with Income Tax Department. Indicates the amount of the payment.

5. Format 26AS – Annual Information Statement

provided byDetails provided in the form
Income Tax Department (This is available on TRACES portal which can be accessed after logging in to e-filing portal or Internet Banking)-Tax deducted/collected at source
-Advance Tax / Self Assessed Tax
-specified financial transaction
-demand / refund
-Pending/Completed Proceedings

6. Form 10E- Form for furnishing return of income for claiming relief under section 89(1) when salary arrears or advance is paid

provided byDetails provided in the form
an employee of the income tax department-arrears / advance salary
-charity
-Compensation on termination
-commutation of pension

7. Form 67 – Statement of income from abroad or from any territory specified outside India and foreign tax credit

submitted byDetails provided in the form
taxpayerIncome and foreign tax deposits claimed from any country or specified territory outside India

8.Form 3CB-3CD

submitted byDetails provided in the form
Taxpayer who is required to get his accounts audited by an accountant under section 44AB. To be submitted on or before 30th September of the assessment yearStatement of Audit Report of Accounts and Particulars of Accounts to be furnished under Section 44AB of the Income Tax Act, 1961

9. Form 3CEB

submitted byDetails provided in the form
A taxpayer who is required to obtain a report from an accountant under section 92E for entering into an international transaction or engaging in a specified domestic transaction. To be submitted on or before 30th November of the assessment yearAudit Report u/s 92E of the Income Tax Act, 1961 relating to International Transactions and Specified Domestic Transactions

Tax Slabs for Assessment Year 2021-22

Senior and very senior citizens can opt for the existing tax regime or the new tax regime with lower taxation rate (under section 115 BAC of the Income Tax Act).

Taxpayers opting for concessional rates in the new tax regime will not be allowed certain exemptions and deductions (like 80C, 80D, 80TTB, HRA) available in the current tax regime.

Senior Citizen i.e., for a resident person of 60 years or more but less than 80 years of age at any time during the previous year:

AGE GROUP 80+

Senior Citizens i.e., a resident person of the age of 80 years or more at any time during the previous year:

Comment:

  1. No increase in basic/basic exemption limit benefit will be available to senior and very senior citizens in the new tax regime
  2. Surcharge Cess and Health and Education Cess are the same under both the tax regimes
  3. Exemption under section 87- A resident individual whose total income does not exceed ₹ 5,00,000 is eligible for exemption of 100% of income-tax or ₹ 12,500, whichever is less. This exemption is available in both tax regimes

Surcharge, Marginal Relief and Health and Education Cess

What is surcharge?

  • Surcharge is an additional charge levied for persons earning income in excess of the specified limit, calculated at the rates applicable to the amount of income-tax.
  • 10% – Taxable income above ₹ 50 lakh – up to ₹ 1 crore
  • 15% – Taxable income above ₹ 1 lakh – up to ₹ 2 crore
  • 25% – Taxable income above ₹ 2 lakh – up to ₹ 5 crore
  • 37% – Taxable income above ₹ 5 crore
  • The maximum surcharge on income by way of dividend or income under the provisions of 111A, 112A and 115AD is 15%.

READ THIS : INCOME TAX RETURN: NO ITR for 75+ years old Taxpayers w.e.f. A.Y. 2022-23

What is marginal relief?

Marginal relief is relief from surcharge, provided in cases where the surcharge payable exceeds the additional income which renders the person liable to surcharge. The amount payable as surcharge shall not exceed the amount of income exceeding Rs.50 lakh, Rs.1 crore, Rs.2 crore or Rs.5 crore respectively

What is Health and Education Cess?

Health and Education Cess @ 4% to be paid on the amount of income-tax plus surcharge (if any)

Investment/Payment/Income on which I can get tax benefit

Section 24(b) – Deduction from income from house property of interest paid on housing loan and home improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on home loan is Rs.2 lakh. However, this deduction is not available to a person opting for the new tax regime.

The interest admissible on loan under section 24(b) is tabulated below:

nature of propertywhen the loan was takenpurpose of taking loanacceptable (maximum)
self-pacedon or after 01/04/1999“Construction or purchase of house property
₹ 2,00,000
self-pacedon or after 01/04/1999for repair of house property₹ 30,000
self-pacedbefore 01/04/1999“Construction or purchase of house property₹ 30,000
self-pacedbefore 01/04/1999for repair of house property₹ 30,000
rented out anytime“Construction or purchase of house propertyActual value without limitation

Specified Tax Deductions under Chapter VIA of the Income Tax Act

These deductions will not be available to taxpayers who opt for the new tax regime under section 115BAC, except for deduction under section 80CCD(2), which will also be admissible under the new tax regime.

80C, 80CCC, 80CCD (1)

Deduction for payments made to these

80C– life insurance premium
– Provident Fund
– Subscription to certain equity shares
– tuition fees
– national savings certificate
– home loan principal
– various other items
80CCCAnnuity plan of LIC or other insurer for pension plan
80CCD (1)central government pension scheme

Combined deduction limit of ₹ 1,50,000

80CCD(1B)

Deduction of payments made to Central Government Pension Scheme excluding deductions claimed under 80CCD (1)

Deduction limit of ₹ 50,000

80CCD (2)

Deduction of contribution made by the employer to the pension scheme of the Central Government

If the employer is a PSU, State Government or otherDeduction limit of 10% of salary
If the employer is Central Govt.Deduction limit of 14% of salary

80D

Deduction for health insurance premiums and payments made for conducting preventive health check-ups

For self/spouse or dependent children– 50,000 rupees if a person is a senior citizen

– ₹ 5,000 for preventive health check-up, included in the above limit
Deduction for medical expenses incurred on senior citizen, if no premium has been paid on health insurance coverage
For Mother Father– 50,000 rupees if a person is a senior citizen

– ₹ 5,000 for preventive health check-up, included in the above limit
For self/husband or wife or dependent children– The deduction limit is ₹ 50,000.

For Mother FatherThe deduction limit is ₹ 50,000.

80DD

Deduction of payment made for the maintenance or medical treatment of a disabled dependent or payment/deposit of any amount under the relevant scheme concerned– fixed deduction
Rs.75,000 is available for physically handicapped person, even if not spent

– deduction
Rs 1,25,000 if the person has severe (80% or more) disability

80DDB

Deduction of payment made for medical treatment of self or a dependent for any prescribed illnessdeduction limit
₹ 40,000
(Rs. 1,00,000 if a senior citizen)

80E

Deduction for interest paid on loan taken for self or relative’s higher educationTotal amount paid towards interest on loan taken

80EE

Deduction for interest payment made on loan taken for acquisition of residential house property where loan is sanctioned between 1st April 2016 to 31st March 2017deduction limit
₹ 50,000
on interest to be paid on loan taken

80EEA

Deduction for interest payment made on loan for first time residential house property acquisition, where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction under section 80EE has not been claimeddeduction limit
₹ 1,50,000
on interest to be paid on loan taken

80EEB

Deduction for interest payment made on loan for purchase of electric vehicle where loan is sanctioned between 1st April 2019 to 31st March 2023deduction limit
₹ 1,50,000
on interest to be paid on loan taken

80G

Deduction towards donations made to certain funds, charitable institutions, etc.
Donations are eligible for deduction under the following categories
– 100% deduction
– 50% deduction
subject to eligibility limit– 100% deduction
– 50% deduction

80GG

Deduction for rent paid for house and applicable only to those whose HRA is not covered. not part of salary

Least of the following allowed as deduction

Rent paid before this deduction from 10% of the total income ₹ 5,000 per month 25% of the total income before this deduction
Note: Form 10BA should be filed to claim this deduction

80GGA

Deduction for donations made to scientific research or rural development

Donations are eligible for deduction under the following categories

for research relation or university, college or other institution

  • scientific research
  • social science or statistical research

relationship or organization

  • Rural development
  • conservation or afforestation of natural resources

Public authority or local authority or relation or institution approved by the National Committee to name an eligible project sanctioner

Fund notified by the Central Government

  • forestry
  • Rural development

National Urban Poverty Alleviation Fund established and notified by the Central Government

Note: No deduction shall be allowed under this section in respect of donations made in cash exceeding ₹2000/- or if the gross total income includes profit/gain from business/business

80GGC

Deduction for donations made to political party or electoral trustDeduction of the aggregate amount paid by any mode other than cash

80TTB

Deduction on interest received on deposits by resident senior citizensdeduction limit
₹ 50,000

80U

Deductions for Taxpayers with Disabilities– Fixed deduction of ₹ 75,000 whether incurred or not for the disabled person

– Fixed deduction of ₹ 1,25,000 for a person with severe disability (80% or more), whether or not incurred

Along with applicable tax benefits, irrespective of the age of the taxpayer, there are some other enhanced/additional benefits for senior/ very senior citizens. Additional benefits are listed below:

paper filing of income tax return

Very Senior Citizens (80 years of age or above) have to submit their ITR in offline/paper mode using Form 1 or 4. There is a deposit option. The option of e-filing is also available for them.

Relief from payment of advance tax

As per section 208, every person, whose estimated tax liability for the year is Rs.10,000 or more, shall pay his tax as advance tax. But, section 207 provides relief to resident senior citizen from payment of advance tax. . Thus, a resident senior citizen who does not have any income from business or profession is not liable to pay advance tax.

Income tax deduction on interest on bank deposits

Section 80TTB of the Income Tax Act allows tax benefits on interest earned from accounts deposited with banks, post offices or co-operative banks. Deduction is allowed for maximum interest income up to Rs.50,000 earned by a senior citizen. Interest earned on savings deposits and fixed deposits is eligible for deduction under this provision.

Further, under section 194A of the Income Tax Act, interest up to Rs 50,000 is paid by a bank, post office or co-operative bank to a senior citizen without deducting any tax at source (TDS). This limit is to be computed for each bank individually.

Tax benefits in respect of medical insurance and expenses

As per section 80D of the Income Tax Act, senior citizens can get a higher deduction of up to Rs 50,000 for paying premium for medical insurance policy. In case of non-senior citizens, the limit is Rs 25,000.

Further, as per section 80DDB of the Income Tax Act, tax deduction is allowed on expenditure incurred by self or dependent person for treatment of specific diseases. The maximum deduction amount is Rs 1 lakh in case of a senior citizen (Rs 40,000 for non-senior citizen taxpayers).

Source : Income Tax