Budget 2021: Senior citizens above age of 75 years exempted from filing income-tax returns
New Delhi, Feb 01: The government on Monday said that the senior citizens with only pension as source of income, granted exemption from filing income tax returns.
Finance Minister Nirmala Sitharaman said,''For those above75 years of age with pension as their only source of income, the government has granted exemption from filing income tax returns,'' adding that the move will help the government simplify tax compliance.
''We shall reduce the compliance burden on our senior citizens who are 75 years of age & above - for senior citizens who only have pension & interest income, I propose exemption from filing their Income Tax return,'' FM Nirmala Sitharaman said.
On the reason for exempting such senior citizens from filing their ITR, Sitharaman said that the move aims to give such citizens to give their dues as they have devoted an important period of their life in nation building.
She also proposed to increase the threshold for tax audit from Rs 5 crore to Rs 10 crore albeit for those transacting 95% digitally.