Income Tax news: These Indian nationals are exempted from filing ITR this year - Check details

For fiscal year 2021-22, senior citizens above the age of 75 will be excluded from filing income tax returns (ITR). The Central Board of Direct Taxes has issued guidelines and declaration forms that older residents must submit to the designated bank. Pension and interest income would be taxed and deposited with the government by banks.

Finance Minister announced this new leniency during the Union Budget 2021. “In the 75th year of Independence of our country, the government shall reduce compliance burden on senior citizens who are 75 years of age and above," she announced.

In consideration of the COVID-19 situation, the deadline for ITR for the fiscal year 2020-21 has been postponed to September 30. The income tax department launched a new e-filing system developed by Indian software company Infosys, www.incometax.gov.in, in June to make tax filing more convenient.

However, a number of users have expressed dissatisfaction with the site's performance. Because of the challenges suffered by common citizens, the finance ministry "summoned" Infosys CEO Salil Parekh to discuss the problem. The government has given the IT firm till September 15 to rectify the faults in the new portal.

Budget 2021 intends to include a new section to allow older individuals over the age of 75 to be exempt from reporting ITRs if the conditions apply:

The senior citizen must have lived in India for the preceding year and be 75 years old or older.

An elderly citizen with a pension but no other source of income. He or she may, however, get interest from the same bank as he or she receives his or her pension income. The government will designate a few banks, all of which are banking companies, as the designated bank in the Budget 2021.

He or she is required to make a declaration to the designated bank, confirmed in such a way as may be required in the statement

It is important to clarify that elderly people over the age of 75 are not excused from paying tax, but merely from filing an income tax return (ITR) if they meet certain requirements. Only if the interest income is produced in the same bank where the pension is lodged would the exclusion from filing income tax returns be granted.

Source : DNA India