Sunday, 5 September 2021

Form notified for declaration by senior citizens



 1. CBDT has notified new Rule 26D in respect of furnishing of declaration and evidence of claims by specified senior citizen under section 194P of the Income Tax Act. 


 2. Note on 194P:

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

As per the Sec, a resident senior citizen having only pension and interest income can claim deductions U/S 80 by submitting declaration to the specified bank. 

TDS will be deducted by the bank accordingly after taking effect of the deductions. Also, in that case, he need not file Income Tax Returns. 


 3. The new rule 26D specifies that declaration shall be made by the senior citizen in Form no. 12BBA and it should be furnished to the specified bank in paper form duly verified.


 4. The declaration shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

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