Finance Minister Nirmala Sitharaman said in his budget speech for 2021-22 that in the 75th year of the country’s independence, we will reduce the burden of tax compliance for senior citizens aged 75 and above.
New Delhi: The country’s general budget for 2021-22 was presented in Parliament by Finance Minister Nirmala Sitharaman. Many important announcements were made by the government through this budget. At the same time, senior citizens have been given relief in this budget by the government.
Under this, senior citizens aged 75 years and above will not be required to file income tax returns for pension income and interest from term deposits for the financial year beginning April 1. However, for this benefit it is necessary that pension and interest income come in the same bank.
Finance Minister Nirmala Sitharaman said in his budget speech for 2021-22 that in the 75th year of the country’s independence, we will reduce the burden of tax compliance for senior citizens aged 75 and above. He said, ‘For senior citizens who have income from pension and interest only, it is proposed to give exemption from submission of income tax return. The paying bank will deduct the necessary tax on their income.
No need to file returns
After the budget, Finance Secretary Ajay Bhushan Pandey said that exemption from filing income tax returns will be applicable only in cases where interest income is received in the bank where pension comes. Pandey said, “People who are 75 years of age and above and whose income comes from interest on pension and term deposits in the same bank and their income is only from interest, then there is no need to fill the returns.”
He said, “Banks will deduct tax on the income given and submit it to the government.” He clarified that if senior citizens have other sources of income, they will have to file income tax returns.
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