Many senior citizens have been exempted from filing Income Tax Returns (ITR) for the financial year 2024-25. Let’s understand who gets this benefit and under what conditions.
Who Can Avail the Exemption?
Senior citizens aged 75 years or above can get exemption.
They must be resident in India in the previous financial year.
Their income should only come from pension and interest earned from the same bank where the pension is deposited.
If there are any other income sources, filing ITR will still be mandatory.
Conditions and Process
Pension and Interest Income Rule
The exemption applies only if income is limited to pension.
The interest must also be received from the same bank account where the pension is credited.
Declaration in Bank
Senior citizens must submit a declaration form to their bank.
This form will have details of their income and eligible deductions.
Based on this, the bank will calculate the tax and deduct TDS on their behalf.
Bank’s Responsibility
Only banks notified by the Central Government can handle this process.
These banks will deduct TDS after considering deductions under Section VI-A and Section 87A.
This way, the individual does not need to file a separate return.
Senior vs. Super Senior Citizens
Senior Citizens: Age between 60 and 79 years.
Super Senior Citizens: Age 80 years and above.
The exemption under Section 194P applies only to individuals who are 75 years or older.