As the new financial year begins, the Income Tax Return (ITR) filing season is officially underway. While many salaried individuals and business owners are busy crunching numbers, it’s important to note that not everyone is obligated to file an ITR. The Income Tax Department provides exemptions for certain categories of taxpayers, sparing them from the hassle of paperwork and compliance—provided specific conditions are met.
Who Needs to File Income Tax Returns?
As per the Income Tax Act, any individual whose annual income exceeds the prescribed basic exemption limit is required to file an Income Tax Return (ITR). For the current financial year, this threshold varies based on factors such as the taxpayer’s age and the nature of their income. Whether salaried or self-employed, individuals earning above the exemption limit must submit their ITR accordingly.
However, there are specific exceptions. The Income Tax Department allows certain categories of taxpayers to skip the filing process under defined conditions.
Who Is Exempt from Filing ITR?
A key exemption is available to senior citizens aged 75 years or above. Under the Income Tax Act, such individuals are not required to file an ITR if their income is limited to pension and interest earned from savings or fixed deposits—provided both are received in the same bank account.
This relief aims to ease the compliance burden for elderly taxpayers who rely solely on fixed income sources. It’s important to note, though, that this exemption applies only when both pension and interest are credited to the same bank.
Form 12BBA: The Key to ITR Exemption for Senior Citizens
Senior citizens who wish to avail of this tax relief must submit Form 12BBA to their respective banks. This form acts as a declaration of income, allowing the bank to deduct the applicable tax at source (TDS) on both the pension and interest.
Once this form is submitted and the correct tax has been deducted, these individuals are no longer required to file an ITR. However, this exemption applies only under the condition that the taxpayer has no other income source apart from pension and bank interest.
Why Is Filing ITR Still Recommended?
Even if someone’s income is below the taxable limit, filing an ITR can be beneficial. Many taxpayers file ITR to claim refunds on excess TDS deducted or to establish financial records for visa processing, loan applications, or government benefits.
That said, senior citizens covered under the exemption rule can enjoy peace of mind, knowing that their tax compliance is taken care of as long as the bank deducts the tax accurately after the 12BBA form submission.
Final Word:
If you or your family members fall under this category, make sure to check eligibility carefully and complete the necessary formalities in time. The Income Tax Department’s relaxation for senior citizens is a thoughtful initiative aimed at making tax compliance easier for those with limited income sources.
(Disclaimer: This article is based on general financial information. Please consult your tax advisor or verify details on the Income Tax Department’s official website before filing.)
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