Income tax return refers to the process through which individuals, businesses, and other entities declare their income to the government and pay the applicable taxes on it. The income tax return filing is an annual requirement and is mandated by the Income Tax Act, 1961. Senior citizens are not automatically exempted from filing ITR in India. Senior citizens, who are Indian residents and have taxable income exceeding the specified limit are required to file an ITR.
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ITR Filing 2023
Filing ITR is a crucial compliance requirement for individuals and organisations in India. It helps the government keep track of taxpayers’ income and ensures that they pay the correct amount of tax. For the purpose of tax compliance, senior citizens are categorised as senior and super-senior citizens, according to the age brackets.
Who Is A Senior Citizen And Super Senior Citizen?
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes. A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
Income Tax Return For Senior And Super Senior Citizens
Is A Senior Citizen Exempted From Filing Income Tax Return (ITR)?
Income-tax Act, 1961 provides no exemption to senior citizens or very senior citizens from filing a return of income. However, to provide relief to the senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Act, 2021, has inserted section 194P.
This provision requires a banking company to deduct tax under this provision if the deductee is maintaining an account with it in which he is receiving his pension income. The tax is required to be deducted under this provision if the recipient is a resident individual whose age is 75 years or more at any time during the year and the following conditions are fulfilled:
- Total Income of the deductee consists only income in the nature of pension and interest received or receivable from any account maintained with deductor (such bank)
- Deductee has furnished a declaration to the deductor containing prescribed particulars.
If the above conditions are satisfied, the deductor shall compute the income of the deductee after giving effect to the deduction allowable under Chapter VI-A and rebate under section 87A. Tax on such income is required to be deducted on the basis of rates in force.
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If tax is deducted from the income of such senior-citizen, he/she shall not be liable to furnish the return of income for the previous year in which tax has been deducted.
What Are The Benefits Available To Senior And Super Senior Citizens In Tax Rates?
Senior citizens and super senior citizens are granted a higher exemption limit as compared to normal tax payers. Exemption limit is the quantum of income up to which a person is not liable to pay tax.
The exemption limit granted to senior citizen and super senior citizen for the financial year 2022-23 is as follows :
Senior citizen
A senior citizen is granted a higher exemption limit compared to non-senior citizens. The exemption limit for the financial year 2022-23 available to a resident senior citizen is Rs. 3,00,000. The exemption limit for non-senior citizens is Rs. 2,50,000.
Super senior citizen
The exemption limit for the financial year 2022-23 available to a resident super senior citizen is Rs. 5,00,000.
However, a rebate of up to Rs 12,500 under section 87A is available in the new tax regime if the income is not more than Rs 5 lakhs. This rebate is available to only resident individuals. Taxpayers such as NRIs, Hindu Undivided Family and firms are not granted rebate under this section.
Is A Very Senior Citizen Granted Exemption From E-Filing Of Income Tax Return?
A very senior citizen filing his/her return of income in Form ITR 1/4 can file return of income in paper mode, i.e., e-filing of ITR 1/4 (as the case may be) is not mandatory. However, he/she may go for e-filing if they wish to do.
Is A Resident Senior Citizen Exempted From Payment Of Advance Tax?
As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of ‘advance tax’. However, section 207 gives relief from payment of advance tax to a resident senior citizen.
As per section 207 a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession, is not liable to pay advance tax.
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