Taxpayers above 75 need to declare pension, interest income in form 12BBA to avail ITR filing exemption

 









The Central Board of Direct Taxes (CBDT) has recently notified a declaration form-- form 12BBA-- for senior citizens of 75 and above in order to avail exemption from income tax return (ITR) filing. This form need to be submitted to their respective banks, which will process the ITR on the behalf of these taxpayers.

CBDT’s notification is in line with the announcement made by finance minister Nirmala Sitharaman in the Budget 2021-22, when she had introduced a provision for exempting senior citizens of 75 years and above having pension income and interest from fixed deposit in the same bank from filing income tax returns for the financial year beginning April 1.

However, the only condition is that those seniors whose income from FD and pension is deposited in the same bank will be eligible for the exemption.

Eligible senior citizens need to submit a declaration of income in form 12BBA with their respective banks. The form seeks information on total income, income from pension and FD interest, details on deduction claimed under chapter VI–A (from section 80C to section 80U) and rebate claimed under section 87A.

After submitting this information, their banks will then assess the form to compute the total taxable income and deduct the necessary tax if any.

"On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force," the notification from CBDT mentioned.

This form needs to be submitted every year by senior taxpayers in order to avail exemption from ITR filing.

The move is a major relief to senior taxpayers as most of these taxpayers are not tech-savvy and find ITR filing a tedious job.

Now onwards their bank will act as a point of contact for the senior taxpayers to help them fill form 12BBA. As most of the banks have dedicated counters and provide doorstep banking for senior citizens, this measure is expected to be a major relief for senior taxpayers.

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