Section 194P has been inserted w.e.f. A.Yr.2021-22 in respect of certain Senior Citizens above the age of 75 years to provide relief to them from filing of Income Tax Return. We look at the TDS provision in respect of that here.
Applicability of the Section 194P
Specified Senior Citizen is covered under this section.
We look at the definition of Specified Senior Citizen as under :
"specified senior citizen" means an individual, being a resident in India -
(i) who is of the age of seventy-five years or more at any time during the previous year;
(ii) who is having income of the nature of pension and no other income except the income of the nature of interest received or receivable from any account maintained by such individual in the same specified bank in which he is receiving his pension income; and
(iii) has furnished a declaration to the specified bank containing such particulars, in such form and verified in such manner, as may be prescribed.
Provisions of the Section 194P
The Specified Bank shall compute the total income of the specified senior citizen after giving deduction under Chapter VIA of the Income Tax and also provide rebate u/s 87A. After computing the total income, the TDS which is required to be deducted shall be deducted by the specified bank.
The Specified Senior Citizen will not be required to file the Income Tax Return as per Section 139 of the Income Tax since the TDS has been deducted by the bank and he does not have any other income etc. from any other source.
Specified Bank means a banking company as the Central Government may, by notification in Official Gazette, specify