Only 75-year-old senior citizens who have income only from pension and interest can get exemption to file returns.
Senior citizens will have to file income tax returns to get the refund, only 0.1 percent will get benefit in the whole country.
- Last Updated:February 1, 2021, 6:21 PM IS
CA Vikas Aggarwal, CA Rajesh Jain and CA Harigopal Patidar in the News18 Expert Panel have analyzed the income taxed portion of the budget. According to them, there has been no change in the rates of income tax. But 75-year-old senior citizens who have income only from pension and interest can get exemption to file returns. There is also a screw in this, that the bank in which this pension is deposited, will be allowed to file returns only on the interest received from FD, RD etc. deposits in the same bank. If they have deposited in another bank, then returns have to be filed. Not only this, the bank will have to give information about various investments like Kisan Vikas Patra, PPF, Life Insurance, ELSS, ULIS etc. under Section 80C-80U of Income Tax. Just like in a job you give all the information to your company, in some similar way. Now the bank will deduct TDS on the remaining taxable income from your deductible deductible income.
Then what was the benefit?
Senior citizens are only allowed to file returns. The only benefit of this would be that if there was a lapse in filing returns earlier, a penalty of Rs 5000 was imposed. Now she will not have to give.
Which senior citizens above 75 years are outside its scope?
Elders with income other than pension or income from rent, dividend, capital gains or business etc. will have to file returns as before. Not only this, even if the pension bank and deposit bank are different, the returns have to be submitted.
How much tax will I have to pay?The existing tax slab will be applicable for senior citizens. According to the Income Tax Act, 1961, tax payers above 60 years of age and 80 years of age are considered as Senior Citizens. The alternative for them will be one ie this tax slab with the old system.
Annual Income Old Tax System
Upto 3 lacs
3 Lakh – 5 Lakh 5%
5 Lakh – 10 Lakh 20%
10 million plus 30%
What will be the rates on joining the new tax regime?There is no separate exemption for senior citizens on adopting new tax regime apart from the tax slab of the old system. That is, they will not get 70 exemptions given in income tax. The tax rates for them will be this.
Annual income new tax regime
Upto 2.5 Lakhs
2.5 Lakh – 5 Lakh 5% *
5 Lakh – 7.5 Lakh 10%
7.5 Lakh – 10 Lakh 15%
10 Lakh – 12.5 Lakh 20%
12.5 Lakh – 15 Lakh 25%
30% over 1.5 million