ITR Exemption: 75 and above will have to submit eligibility proof

The Central Board of Direct Taxes (CBDT) has notified under Income Tax Act rules that th0se who are 75 years and above age will have to furnish a declaration at the bank providing eligibility proof to avail exemption from filing income tax returns. It is essential to check the declaration and deduct tax as per applicable tax rates in some banks. The banks are required to give information to income tax authorities for which they need to keep data ready. The principal director general of income tax (systems) states the procedure for submitting the required documents to the principal chief commissioner or chief commissioner of income tax.

When claiming exemption, the tax payers have to fill out a declaration which is Form 12BBA issued by CBDT. Senior citizens who do not claim the exemption will have to file their income tax returns as per regular procedure. The specified banks in this case would be scheduled banks appointed as agents of the Reserve Bank of India, mentioned by the board in a separate notification.

In the Union Budget 2021, finance minister Nirmala Sitharaman had announced a provision that permitted people 75 years and older who do not have income other than pension and or interest from savings bank accounts to not file income tax returns. Earlier this year, conditional relief was introduced in the Finance Act. It has been made applicable from April 1, 2021 and aims to reduce the compliance burden for those above 75.