Section 194P – Relaxation from filing ITR (Effective 1st Apr’21)

Relief to Whom?

  • Senior Citizen is a resident of India and of age 75years or above during the previous year.
  • Is liable to file return of income under section 139(1).
  • Has only pension income and may also have interest income from the same bank in which he is receiving his pension income.
  • Has furnished a declaration to the bank containing such particulars, in such form and verified in such manner, as may be prescribed.

 What shall bank do?

  • Compute the income of such senior citizen after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year.
  • Deduct income tax based on rates in force.

Once this is done, there will not be any requirement of furnishing return of income by such senior citizen for that assessment year. 

˜Authored by – CA Anushka Saraogi˜

Section 194DA- TDS on maturity payment in respect of Life Insurance Policy

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