Q. Who is a “Senior Citizen” in India?
Ans- An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered a Senior Citizen for Income Tax purposes. A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
Q. What are the conditions for exempting Senior Citizens from filing income tax returns in India?
Ans- Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above. Conditions for exemption:
- Senior Citizens should be of age 75 years or above
- Senior Citizens should be ‘Resident’ in the previous year
- Senior Citizen has pension income and interest income only & interest income accrued/earned from the same specified bank in which he is receiving his pension
New Section 194P is applicable from 1st April 2021.
Q. What are the Income tax forms applicable to file income tax returns for “Senior citizens” in India?
Ans- The following are the Income tax forms applicable for filing Income tax returns for “Senior citizens” in India-
ITR-1 SAHAJ
Who is eligible to use this Return Form
This Return Form is to be used by an individual who is a resident other than not ordinarily, residents, whose total income for the Assessment Year 2021-22 does not exceed Rs. 50 lakh and who has income under the following heads:-
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Interest income and/ or family pension taxable under Other Sources.
NOTE:
Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
Who is not eligible to use this Return Form?
(A) This Return Form should not be used by an individual who –
- is a Director in a company;
- has held any unlisted equity shares at any time during the previous year;
- has any asset (including financial interest in any entity) located outside India;
- has signing authority in any account located outside India; or
- has income from any source outside India.
- has deferred tax on ESOP received from the employer being an eligible start-up.
- has withdrawn cash and TDS has been deducted u/s 194N on such withdrawal.
(B) This return form also cannot be used by an individual who has any income of the following nature during the previous year:-
- Profits and gains from business and professions;
- Capital gains;
- Income from more than one house property;
- Income under the head of other sources is the following:-
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBDA or section 115BBE; - Income to be apportioned by provisions of section 5A; or
- Agricultural income over ₹5,000.
(C) Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit, etc. of the following nature:-
- any brought forward loss or loss to be carried forward under the head ‘Income from house property’;
- loss under the head ‘Income from other sources’;
- any claim of relief under section 90 and/or section 91;
- any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
- any claim of credit of tax deducted at source in the hands of any other person.
Annexure-less Return Form
No document (including the TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.
ITR‐2
Who is eligible to use this Return Form?
This Return Form is to be used by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR‐1 (Sahaj) and who is not having any income under the head “Profits or gains of business or profession”.
Who is not eligible to use this Return Form?
This Return Form should not be used by an individual whose total income for the Assessment Year 2021‐22 includes Income under the head “Profits or Gains of Business or Profession”.
ITR‐3
Who is eligible to use this Return Form?
This Return Form is to be used by an individual or a Hindu Undivided Family who has income under the head “profits or gains of business or profession” and who is not eligible to file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam).
ITR-4 SUGAM
Who is eligible to use this Return Form
This Return Form is to be used by an individual or HUF, who is a resident other than not ordinarily resident, or a Firm (other than LLP) which is a resident, whose total income for the assessment year 2020 21 does not exceed Rs.50 lakh and who has income under the following heads:-
- Income from business where such income is computed on a presumptive basis under Section 44AD (i.e. Gross Turnover up to Rs. 2 crore) or Section 44AE (income from goods carriage up to ten vehicles); or
- Income from Profession where such income is computed on a presumptive basis under Section 44ADA (i.e. Gross receipt up to Rs. 50 lakh); or
- Income from Salary/Pension; or
- Income from One House Property; or
- Interest income and/or income from family pension are taxable under Other Sources.
Note 1: The income computed on a presumptive basis under sections 44AD 44AE or 44ADA shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation, or deduction under the Income-tax Act. However, a person having loss after giving effect to the proviso to sub-section 3 of Section 44AE shall file ITR5
Note 2: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
Who is not eligible to use this Return Form
(A) This Return Form should not be used by a person who–
- is a Director in a company;
- has held any unlisted equity shares at any time during the previous year;
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India; or
- has income from any source outside India.
- has deferred tax on ESOP received from the employer being an eligible start-up.
(B) This return form also cannot be used by a person who has any income of the following nature during the previous year:-
- Profits and gains from business and professions which is not required to be computed u/s 44AD, 44ADA, or 44AE, such as income from a speculative business, agency business, commission or brokerage income, etc
- Capital gains;
- Income from more than one house property;
- Income under the head of other sources which is following:-
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBE; - Income to be apportioned by provisions of section 5A; or
- Agricultural income over ₹5,000.
(C) Further, this return form also cannot be used by a person who has any claims of loss/deductions/relief/tax credit, etc. of the following nature:-
- any brought forward loss or loss to be carried forward under any head of income;
- loss under the head ‘Income from other sources’;
- any claim of relief under section 90, 90A, or section 91;
- any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
- any claim of credit of tax deducted at source in the hands of any other person.
The SUGAM form is not mandatory
Form ITR-4 (Sugam) is a simplified return form to be used by an assessee, at his option, if he is eligible to declare profits and gains from business and profession on a presumptive basis under section 44AD, 44ADA, or 44AE. However, in case the assessee keeps and maintains all books of accounts and other documents referred to in section 44AA, and also gets his accounts audited and obtains an audit report as per section 44AB, filling up the Form ITR-4 (Sugam) is not mandatory. In such a case, other regular return forms viz. ITR-3 or ITR-5, as applicable, should be used and not this Form.
Annexure-less Return Form
No document (including the TDS Certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.
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