• Fri. Jun 9th, 2023

Be Happy Be Healthy

CA. Ajay Khandelwal

हिंदी में पढ़ने के लिए क्लिक करें

Here we will discuss about the new provisions related to No ITR for 75 years old persons. A new Section 194P has been inserted in Income Tax Act for this purpose. A person who has completed 75 years of age at any time during the year, are covered here. So, if a person becomes 75 years old on 31st March, he is also covered.

Other Conditions for applicability of this provision

  • The person should be resident individual.
  • He has Pension income which is credited in a ‘specified bank’.
  • In addition to pension, he has no other income except interest which is generated from an account maintained with same specified bank.

If above conditions are satisfied, then such person has to fill a declaration form with such specified bank. Then bank will calculate the income of such person after giving effect to deductions u/s 80C to 80U and rebate u/s 87A. For this, bank may demand the proof of investments, etc for claiming deduction u/s 80C to 80U. Thereafter, the tax so calculated shall be deducted by bank from the account of such person in the form of TDS. The bank will remit the details to Income Tax Department. So, the person will not be required to file any separate ITR with Income Tax Department in such cases.

What is specified Bank

Specified bank here means the bank as the Central Govt. will specify by gazette notification.

Critical Analysis of this New Provision

  • No ITR for senior citizens of 75 years or more. So, all senior citizens are not covered by this provision.
  • For the person covered, there is almost same work for giving information to Income Tax Department, only the route is through bank staff instead of Tax Consultant.
  • Bank staff may not be fully knowledgeable about income tax provisions.
  • For consultancy related to other income tax matters, the person has still to approach tax consultant.
  • A new assignment for bank staff, in spite of already huge workload.
  • If a person has any income other than pension and interest, he can’t avail the benefit of this provision.

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