Exception for from tax filing for elderly by FM: Budget 2021-22.
Key sentence:
- Finance minister Nirmala Sitharaman declared a tax exemption for the aged as well as senior citizens.
- Senior citizens who now have pension income are excluded from paying income tax returns “For those 75 years and above.
On Monday, finance minister Nirmala Sitharaman declared a tax exemption for the aged as well as senior citizens. Sitharaman, declaring the exemption, stated, “We will reduce the adherence burden upon senior citizens throughout the 75th year of the country’s independence. I suggest an exception for the filing of the income tax return for senior citizens who have just pension as well as interest income.
As the Minister of Finance stated:
Regarding this, senior citizens who now have pension income are excluded from paying income tax returns “For those 75 years as well as above we will reduce the regulatory burden Senior citizens over the age of 75 through interest income alone would not have to submit income tax returns says the Minister of Finance.
The government has also proposed a halving of the timeline for the reopening of income tax assessment situations from 6 years to 3 years, in order to minimize cases of tax abuse of the elderly.
The government has set a monetary cap on cases involving more than 50 lakh per year in order to reopen major tax evasion cases for up to ten years.
The tax rate for senior citizens age 60-80 years up to now:
Up to ₹300,000 – Null.
₹3,00,001 to ₹5,00,000 – 5%.
₹5,00,001 to ₹10,00,000 – ₹10,000+ 20% of taxable earnings in excess of 5,00,000.
Above ₹10,00,000 – ₹1,10,000 + 30% of overall sales exceeding ₹10,00,000.
The preferred choice of investment for senior citizens is bank fixed deposits:
A person resident between the ages of 60 and 80 years is a senior citizen. A person resident who is over 80 years old is a super-senior citizen. Many senior citizens depend on fixed-income savings, but the pandemic has affected them adversely.
This occurred as bank fixed deposits (FDs), providing an interest rate of less than 6 per cent per annum over various tenures became the preferred investment option for senior citizens. But the decline in interest rates has hit most senior citizens’ earnings.
