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Section194P-Exemption for ITR filing for Senior Citizen


Finance Act 2021 inserted a new section 194P which provided conditions for exempting senior citizens from filing Income Tax returns aged 75 years and above.

New Section 194P will become applicable from 1st April 2021. The provisions of section 194P are given below –

Specified Senior Citizen – Under section 194P, tax is deductible only in the case of “specified senior citizen”. For this purpose, a specified senior citizen is an individual who satisfies the following conditions –
  • The Senior Citizen should be resident in India.
  • The senior citizen should be of the age of 75 years or more during the previous year.
  • The senior citizen should the income from pension which is credited in his pension account with “specified bank”.
  • The senior citizen should no other income except interest received/receivable from any account maintained in the same “specified bank” in which he gets pension income.
  • The senior citizen should have furnished a required declaration to the “specified bank”. Which contains such particulars, in such form and verified in such manner, as may be prescribed.


Specified bank– “Specified bank” means a banking company as notified by the Central Government.

Filing of the Declaration-

The declaration should contain the below-mentioned details-

  • Total income of the Senior Citizen
  • Deductions availed under section 80C to 80U (if any)
  • Rebate under section 87A
  • Confirmation regarding of having only pension and interest income

Tax deduction by specified bank-

Once the declaration is furnished by the specified senior citizen, the specified bank would be required to compute the income of such person after giving the effect of deduction available under section 80C to section 80U and rebate admissible under section 87A of the Income Tax Act (if any), and deduct appropriate income tax on such total income of the specified senior citizen.

Benefits to specified senior citizen under section 194P-

Senior Citizens are not required to file Income Tax Return under section 139(1) means– The provisions pertaining to submission of return of income under section 139, shall not apply to the specified senior citizen for the assessment year relevant to the previous year in which tax is deducted under section 194P.


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