Our Financial Minister Mrs. Nirmala Sitharaman announced that senior citizens above 75 years of age wouldn’t file income tax returns from this financial year 2021-22.
This is some what big relief to senior citizens who depend entirely on Pension Income.
From April 2021, senior citizens who falls under income tax bracket and are above 75 years of age need not file IT Returns. But the central government included a clause for practical application of this rule.
If you are a senior citizen and maintains separate bank a/c’s for savings/investments and Pension Credits, you will not be eligible to apply under this rule.
The Central Board of Direct Taxes(CBDT) issued a circular that this rule would be applicable-” If the pension amount and the savings/investments are maintained from the same bank a/c.”
That means the interest credited from the fixed deposits and the pension amount would be maintained in the same bank a/c. The senior citizen can claim TDS(Tax Deducted at Source)by submitting all the income proofs to to the bank.
So to be eligible under this law, the senior citizen of above 75 years of age would maintain same bank a/c from here on wards. So Plan accordingly!