As per Finance Act 2021, a new section 194P is introduced which offered situations for exempting senior citizens from Income Tax returns filing aged 75 years and above. This new Section 194P will become into effect from 1st April 2021.
TDS Section 194P was introduced in Budget 2021 to offer conditional relief to the senior citizen above the age of 75 years from the Income-tax return filing.
Section 139 of the Income Tax Act rules the income tax returns filed by every individual with their income above the basic exemption limit.
Whereas, Union Budget 2021 in case to offer relaxation in terms of compliance load for returns filing, exempted senior citizens above 75 years of age from the income tax return filing, concern to the following situation:
The notified bank as stated above shall deduct TDS on the basis of a submitted declaration through the senior citizen in the bank.
A declaration must state the below-mentioned pieces of information:
Once the notified bank as stated above deducts TDS as per section 194P, the laws of section 139 (return filing ) of IT Act, 1961 would not apply to senior citizens aged 75 years and above. This refers that if the notified bank deducts TDS as per this section, then the senior citizen requires not to file their ITR.
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