Filing I-T returns: Senior citizens above 75 need to keep these 7 things in mind

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If you are 75-years-old and pension and interest are the only means of your income, then you can do without filing income tax returns.

Chartered accountant Mayur Kapoor pointed out that if earnings as interest and pension amount don’t come into the same bank account, then there’s no respite from filing income tax returns.

Here are 7 things that senior citizens need to keep in mind: 

— It is coming into effect from the Financial Year commencing from 1 April 2021. So, an individual will be able to claim this benefit next year

— If an individual’s birthday falls between April 1 2021 to March 31 2022, then he or she will get the benefit.

— If pension and FD are in two different banks, then shift it to one place. The Budget memorandum states that in order to take advantage of this, it is important that interest and pension come in the same account. Also, if you have multiple FDs, then make them one. If you want to take advantage of this in FY 2021-22, then do it by 31 March 2021.

— If an individual earns from rental income, capital gains and dividend, then he has to file IT return. If you transfer the rent income to your spouse, then it will be clubbed with your income. Do this only if the income of the spouse is not taxable. Transfer of rent income to children will also lead to clubbing. But if the property is in the name of spouse or children, then only it will be considered as their income.

— If interest from fixed deposit and savings bank account is less than Rs. 50,000 or less, then fill in Form 15H provided by bank so that extra TDS is not deducted. These are exempt under Section 80 TTA of the Income Tax Act. If tax is deducted, then IT return will have to be filed for refund.

— You will have to inform your bank by declaring that there is no other source of your income and if you are taking any deduction such as 80C or 87-A rebate.

According to Sudhir Kaushik of Taxspanner.com, this step has been taken so that senior citizens are exempted from the formality of filing returns.