New Delhi, September 08: The Central Board of Direct Taxes has notified a new rule that mandates senior citizens above 75 years to submit form 12BBA for claiming the benefit of not filing an income tax return (ITR) under section 194P.
The board has notified a new rule 26D, under which senior citizens are required to submit form 12BBA with the specified bank to claim the benefit of section 194P.
The board has also amended form 16, form 24Q, form 26QC and form 26QD to incorporate necessary changes related to provisions of section 194P.
Section 194P was inserted in the Income Tax Act, 1961 via the Finance Act 2021, which provides conditional relaxation to specified senior citizens from the filing of an ITR.
Under section 194P, tax deduction at source is deductible only for specified senior citizens above 75 years. T
hese seniors need to submit a declaration of income in form 12BBA to the specified bank as notified by the Union government.
The declaration contains information like total income, details of deductions under section 80C to section 80U, rebate available under section 87A and a declaration confirming receipt of income only from pension and interest.
After receiving the declaration from the specified senior citizens, the specified bank will compute their total income after considering deductions available under section 80C to section 80U and rebate admissible under section 87A of the I-T Act.
If needed, the bank will also deduct appropriate tax from the total income of these seniors.
Once the specified bank deducts tax under section 197P, the specified senior citizens are not required to file ITR since section 139 will not apply to them.
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