ITR submitting 2023: Last date for earnings tax return (ITR) submitting for the monetary yr 2022-23 is thirty first July 2023. Is it obligatory for senior residents to file earnings tax returns for the monetary yr 2022-23? There is confusion within the minds of many individuals as regards who has to file an ITR.
Introduced in Budget 2021, Section 194P of the Income-tax Act, 1961 presents reduction to pick out senior residents from submitting earnings tax returns in the event that they meet sure eligibility standards.
Section 194P is relevant from 1st April 2021.Section 194P of the Income Tax Act exempts senior residents aged 75 and above from submitting ITR in the event that they meet sure situations, together with having pension and curiosity earnings solely from specified banks and submitting a declaration to the financial institution. The specified financial institution will deduct tax and there shall be no must file ITR.
No earnings tax submitting required for senior residents in the event that they fulfill these situations
“Section 194P of the Income Tax Act exempts senior residents from submitting ITR in the event that they meet sure situations, like, ‘Must be a resident of India and attain the age of 75 years or more by the end of FY 2022–23. The income should be just from pensions or interest through banks. Interest income accrued/earned from the same specified bank from which he receives his pension. Additionally, senior citizens should submit a declaration to these specified banks,”said Abhishek Soni, CEO and Co-founder Tax2win.
Senior citizens with total income below the taxable limit may not file ITR. However, in case any TDS has been deducted from income earned by them, for example from fixed deposit interest income, then the only way to get a refund is by filing ITR.
“With deposits in the same bank from where the pension is received, may request the bank to deduct TDS accurately and then may not have to file their ITR where they have submitted a declaration to the Bank. Such a bank may allow deduction based on Chapter VIA (i.e. 80C etc) and deduct and deposit tax on their behalf. In such a case no ITR will have to be filed. As suggested income tax return must be filed if income is more than the taxable limit or where income is below the taxable limit yet TDS has been deducted so that they can claim a refund,” said Archit Gupta, Founder and CEO, Clear.
However, it is not clear how many senior citizens are benefitting from this provision, added Gupta.
Senior Citizens for AY 2023-2024: What does thenIncome tax act say
Section 194P of the Income Tax Act, of 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.
Conditions for exemption are:
-Senior Citizen should be of age 75 years or above
-Senior Citizen should be ‘Resident’ within the earlier yr
Senior Citizen has pension earnings and curiosity earnings solely & curiosity earnings accrued/earned from the identical specified financial institution through which he’s receiving his pensionThe senior citizen will submit a declaration to the required financial institution.The financial institution is a ‘specified bank’ as notified by the Central Government. Such banks shall be accountable for the TDS deduction of senior residents after contemplating the deductions below Chapter VI-A and rebate below 87A.Once the required financial institution, as talked about above, deducts tax for senior residents above 75 years of age, there shall be no requirement to furnish earnings tax returns by senior residents.Will govt prolong July 31 ITR submitting deadline?
The finance ministry has requested earnings taxpayers to file their returns on the earliest as the federal government isn’t considering an extension of the July 31 deadline.
“We expect that the filing would be higher than the last year…we are hopeful that it should be more than the last year,” Revenue Secretary Sanjay Malhotra stated in an interview with PTI.
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Updated: 18 Jul 2023, 02:35 PM IST
