Should Senior Citizens File Income Tax? What does the Income Tax Act say?

The time has come to file income tax returns. Should Senior Citizens File Income Tax Returns? Do they get an exemption? Let's see about that.

Income Tax Act and Senior citizens

People under 60 years of age should file income tax returns if they earn more than Rs.2.5 lakhs per annum. This age limit is same in both old and new system.

Senior citizen Income tax rules

Under the Income Tax Act, people above 60 years of age and below 80 years of age come under the category of senior citizens. people who have reached the age of 80 years and above will come under the super senior category.

Senior citizens IT filling

The Union Budget 2021 exempted senior citizens from filing income tax returns. According to Section 194B of the Income Tax Act, senior citizens above 75 years of age are not required to file income tax returns.

Income tax filling for senior citizens

In particular, those above 75 years of age should not file income tax returns even if they have pension and interest income from bank deposits. TDS will be deducted from the bank account itself.

Senior Citizens Tax Exemptions

However, senior citizens above 75 years of age have to submit only a few documents once a year to the bank with which they have an account. There is an option to avoid TDS deduction by submitting certain documents to the bank. But this option is available only in some banks.

Income tax for senior citizens

As far as senior citizen tax exemptions are concerned for those between 60 to 75 years of age, income tax will be deducted from 3% if the annual income is above Rs.3 lakh. They are compulsorily required to file income tax returns.