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ITR Filing: Things Senior Citizens Should Know Before Submitting Income Tax Returns

Older people new to ITR filing or with limited knowledge should know their basic tax exemption limit. For instance, for senior citizens, it is Rs 3 lakh; for super senior citizens, it is Rs 5 lakh.

June 19, 2024
June 19, 2024
ITR Filing: Things Seniors Should Know Before Submitting ITR

ITR Filing: Things Seniors Should Know Before Submitting ITR

The season for income tax returns (ITR) filing has begun, and it can be challenging for some people, especially senior citizens, given the many misconceptions surrounding it. One such belief is that people need not file their returns if an income is already subject to tax deduction at source (TDS). Hence, it is vital to understand how the taxation rules apply in India.

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For older people new to ITR filing or with limited knowledge, they should know the basic exemption limit. For instance, senior citizens who are 60 years and above,it is Rs 3 lakh; for super senior citizens (80 years and above), it is Rs 5 lakh.

Any failure to disclose all incomes during a financial year can result in under-reporting and potential tax department scrutiny and penalties. Seniors can claim deductions up to Rs 1.5 lakh for investments and interest income under section 80C of the Income Tax Act 1961.

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Here are some income tax sections they should know:

Section 194P

Some seniors may have the misconception that they don’t need to file ITR returns if tax is deducted at source (TDS) for pension and interest income. However, it applies only to seniors 75 and olderunder Section 194P. Those eligible for a tax refund must still file an ITR return.

Section 87A

Section 87A of the I-T Act provides a tax rebate to those with income below Rs 5 lakh. The rebate is limited to Rs 25,000 in the new tax regime. If a senior citizen avails of the new tax regime and their income does not exceed Rs 7 lakh, they can avail a rebate on their tax liability.

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Deduction On Pension Amount

The income tax department allows a standard deduction of up to Rs 50,000 against salary and pension income under Section 16(ia) of the I-T Act. Additionally, senior citizens who receive rent from their children or relatives must also mention the money received in their income tax returns. However, the I-T department provides some relaxation to for super senior citizens. For example, they can submit the ITR 1 or ITR 4 forms in the offline or paper modes and via online. However, before filing their income tax returns, they must assess the 26AS and AIS Forms for tax deducted at source. They can claim deductions or receive a refund under these heads, if their annual income is below the taxable limit.

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