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Effective 1st April, 2021

This section intends to provide a conditional relief to "Specified Senior Citizen" from the burden of filing their Income tax return.

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Specified Senior Citizen: means an individual, being a resident in India:

• who is of the age of 75 years or more at any time during the previous year;

• who is having Pension and interest income only.

• The interest income should be from same specified bank in which he is receiving his pension income; and

• has furnished a declaration to the specified bank containing such particulars, in such form and verified in such manner, as may be prescribed

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The form and content of declaration is not yet specified.

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The declaration should ideally contain the following information:

a) He is of 75 years of more

b) Total Income include Pension and interest income only.

c) Chapter VI-A deduction available to him

d) Rebate u/s 87A

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TDS u/s 194P by Specified Bank

On receipt of declaration, the specified bank shall compute the total Income of Specified Senior Citizen.

Bank will take into effect the chapter VI-A deduction and rebate u/s 87A available to such senior citizen. Bank will then deducted TDS u/s 194P as per the applicable rates in force.

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Once TDS is deducted, section 139 shall not be applicable on the specified senior citizen. Simply put, specified senior citizen will not be requited to file their Income Tax Return.

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Central Government has not yet notified Specified Banks

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