Finance Minister Nirmala Sitharaman has announced a major relief for senior citizens over 75 years of age. The FM in the Union Budget 2021-22 Speech said, senior citizens of 75 years and above are now exempted from filing Income Tax returns.
Senior Citizens who are dependent only on pension income will no longer need to file the I-T returns now. The proposal is aimed to reduce the compliance burden on senior citizens said FM in the budget speech.
The FM Sitharaman said: For senior citizens who only have a pension and interest income, I propose exemption of filing of income tax returns.
We shall reduce the compliance burden for those 75 years and above. Senior citizens above 75 years of age with only interest income will not have to file income tax returns.
Furthermore, the government has also announced a step for cutting down incidences of tax harassments for elderly. The FM has proposed reduced time frame from 6 years to 3 years for reopening of income-tax assessment cases. For reopening of serious tax evasion cases up to 10 years, the monetary limit is capped at least Rs 50 lakh in a year.
The tax slab until now for senior citizen aged 60-80 years:
Currently a senior citizen is a resident individual between 60 to 80 years of age and a super senior citizen is a resident individual above 80 years.