BUDGET 2021-22: Senior citizens exempted from filing IT returns

NEW DELHI: The Centre today announced exemption for senior citizens above the age of 75 years with only pension as income from filing income tax return.

“In the 75th year of Independence of our country, we shall reduce compliance burden on senior citizens. For senior citizens who have only pension and interest as income, I propose exemption from filing income tax returns,” Union finance minister Nirmala Sitharaman said presenting the Union Budget 2021.

 “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,” she added.

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The decision is aimed at reducing instances of tax harassment of the elderly.

The government has also announced reduction of time frame for reopening income-tax assessment cases from six years to three years.

The government has also put in a monetary limit of cases involving over Rs 50 lakh in a year for reopening serious tax evasion cases up to 10 years.