Union finance minister Nirmala Sitharaman on Monday announced exemption from filing tax for the senior citizens of the country.
“In the 75th year of Independence of our country, we shall reduce compliance burden on senior citizens. For senior citizens who only have pension and interest income, I propose exemption of filing of income tax returns,” Sitharaman said after announcing the exemption while presing the Union Budget 2021.
The senior citizens of the country, who only have pension income, now have no need to file income tax returns.
Sitharaman said: “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.”
The decision has been taken by the central government to reduce instances of tax harassment of the elderly.
The government has also announced to reduce the time frame for reopening of income-tax assessment cases from 6 years to 3 years.
For reopening of serious tax evasion cases up to 10 years, the government has put in a monetary limit of cases involving over Rs 50 lakh in a year, says a media report.
A senior citizen is an individual resident in the age bracket of 60-80 years.