Senior citizens of 75 years and above having pension income and interest from fixed deposit in the same bank would not be required to file income tax returns for the financial year beginning April 1.
In the Budget Speech 2021-22, Finance Minister NirmalaSitharaman said that in the 75th year of Independence of our country, the government shall reduce compliance burden on senior citizens who are 75 years of age and above.
“For senior citizens who only have pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income,” she said.
Addressing reporters, Finance Secretary Ajay BhushanPandey said the exemption from filing income tax returns would be available only in case where the interest income is earned in the same bank where pension is deposited.
“Persons whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not file income tax return.