In a good news for senior citizens above the 75 years of age, the in the Union Budget 2021 has announced that no income tax filing (ITR Filing) will be required for seniors citizens above 75 years of age and who only have income coming from pension and interest income.
The idea of doing this is to reduce the compliance burden on senior citizens who are 75 years of age & above and who only have pension & interest income.
The bank will however deduct the necessary tax before paying interest from their bank accounts. This means that this is not an exemption from paying income tax but only from filing ITR provided the eligibility conditions (above 75 years age and only pension and interest income) are met.
To know more, check the latest income tax slab rates (FY2021-22) and no tax if income below Rs 5 lakh.