No ITR Filing For Senior Citizens Proposed in Budget 2021

As promised by the Union Finance Minister Nirmala Sitharaman, Budget 2021 is indeed historic and revolutionary. Apart from the multiple measures that the Finance Ministry has announced to help businesses recover from the pandemic, there are also provisions to make taxation easier for individual taxpayers.Senior taxpayers are always a top priority for the government. Newer provisions are regularly announced to make taxation easier for them. Another significant measure announced by the Union Finance Minister in her Budget 2021 speech is no ITR-filing for senior citizens. Take a look at who is eligible for this new provision-

As per the new provision, senior citizens above the age of 75 years who only have interest and pension income are no longer required to file tax returns. Under Section 139 of the IT Act, every individual whose annual income is above the minimum tax-exemption threshold should mandatorily file ITR.But the new provision has made an exception for seniors above 75 years with only interest and pension income.

Individual taxpayers under the age of 60 years are not required to pay taxes if their annual income is below Rs. 2.5 lakhs in a financial year. It is not even mandatory for them to file ITR.But for senior taxpayers between the age group of 60 and 80, the exemption limit is Rs. 3 lakhs in a financial year. For super seniors above 80 years, this limit is Rs. 5 lakhs. Even the income tax rate is lower for seniors.

No, the new provision has only eliminated the need for seniors above 75 years to file ITR if they only receive interest and pension income.There have been no changes to the tax rates, and they will continue paying income tax as before. They just don’t need to mandatorily file ITR as stated under Section 139 of the IT Act even if their annual income is above the tax-exemption threshold.

This elimination of mandatory ITR filing for seniors above 75 years is a step in the right direction. Such measures help make taxation easier and encourage more citizens to take advantage of all the different policies and provisions that the government announces regularly.If you are above 75 years and only receive interest and pension income, you no longer need to file ITR or worry about its consequences.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.