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Returns and Forms Applicable for Senior Citizens and Super Senior Citizens for AY 2021-2022    

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    Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications

    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 as 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.

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    Note: 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 Citizen should be of age 75 years or above
    • Senior Citizen 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

     

    1. ITR-1 (SAHAJ) – Applicable for Individual

    This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh

    Salary/ Pension One House Property Other sources (Interest, Family Pension, Dividend etc.) Agricultural Income up to ₹ 5,000

     

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    Note: ITR-1 cannot be used by a person who:
    (a) is a Director in a company
    (b) has held any unlisted equity shares at any time during the previous year 
    (c) has any asset (including financial interest in any entity) located outside India 
    (d) has signing authority in any account located outside India 
    (e) has income from any source outside India
    (f) is a person in whose case tax has been deducted u/s 194N
    (g) is a person in whose case payment or deduction of tax has been deferred on ESOP

     

    2. ITR-2 - Applicable for Individual and HUF

    This return is applicable for Individual and Hindu Undivided Family (HUF)

    Not having income under the head Profits or Gains of Business or Profession Who is not eligible for filing ITR-1

     

    3. ITR-3 - Applicable for Individual and HUF

    This return is applicable for Individual and Hindu Undivided Family (HUF)

    Having income under the head Profits or Gains of Business or Profession Who is not eligible for filing ITR-1, 2 or 4

     

    4. ITR-4 (SUGAM)– Applicable for Individual, HUF and Firm (other than LLP)

    This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having Income from Business and Profession which is computed on a presumptive basis and income from any of the following sources:

    Salary / Pension One House Property Other sources (Interest, Family Pension, Dividend etc.) Agricultural Income up to ₹ 5,000 Income from Business /  Profession computed on presumptive basis u/s 44AD / 44ADA / 44AE

     

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    Note: ITR-4 cannot be used by a person who:

    (a) is a Director in a company
    (b) has held any unlisted equity shares at any time during the previous year 
    (c) has any asset (including financial interest in any entity) located outside India 
    (d) has signing authority in any account located outside India 
    (e) has income from any source outside India
    (f) is a person in whose case payment or deduction of tax has been deferred on ESOP

    Please note that  ITR-4 (Sugam) is not mandatory. It 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 presumptive basis u/s 44AD, 44ADA or 44AE.
     

     

     

    Forms Applicable

    1. Form 15H - Declaration to be made by an individual (who is 60 years of age or more) claiming certain receipts without deduction of tax 

    Submitted by

    Details provided in the form

    A Resident Individual, 60 years or more of age to Bank, for not deducting TDS on interest income  Estimated Income for the FY

     

    2. Form 12BB - Particulars of claims by an employee for deduction of tax (u/s 192)
    Provided by Details provided in the form
    An Employee to his Employer(s) Evidence or particulars of HRA, LTC, Deduction of Interest on Borrowed Capital, Tax Saving Claims / Deductions for the purpose of calculating Tax to be Deducted at Source (TDS)

     

    3. Form 16 - Details of Tax Deducted at Source on salary (Certificate u/s 203 of the Income Tax Act, 1961)
    Provided by

    Details provided in the form

    An Employee to his Employer(s) Salary paid, Deductions / Exemptions and Tax Deducted at Source for the purpose of computing tax payable / refundable

     

    4. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary 
    Provided by Details provided in the form
    Deductor to Deductee Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department.

     

    5. Form 26AS - Annual Information Statement
    Provided by Details provided in the form
    Income Tax Department (It is available on the  TRACES portal that may be accessed after logging on to e-Filing portal or Internet Banking)
    • Tax Deducted /  Collected at Source
    • Advance Tax / Self- Assessment Tax
    • Specified Financial Transactions
    • Demand /  Refund
    • Pending /  Completed Proceedings

     

    6. Form 10E - Form for furnishing particulars of Income for claiming relief u/s 89(1) when Salary is paid in arrears or advance
    Provided by Details provided in the form
    An Employee to the Income Tax Department
    • Arrears / Advance Salary
    • Gratuity
    • Compensation on Termination
    • Commutation of Pension

     

    7. Form 67- Statement of Income from a country or specified territory outside India and Foreign Tax Credit
    Submitted by Details provided in the form
    Taxpayer Income from a country or specified territory outside India and Foreign Tax Credit claimed

     

    8. Form 3CB-3CD 
    Submitted by

    Details provided in the form

    Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB. To be furnished on or before 30th September of the AY Report of audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961

     

    9. Form 3CEB
    Submitted by

    Details provided in the form

    Taxpayer who is required to obtain a report from an Accountant u/s 92E for entering into an International Transaction or Specified Domestic Transaction. To be furnished on or before 31st October of the AY Audit report u/s 92E of the Income Tax Act, 1961, relating to International Transaction(s) and Specified Domestic Transaction(s)

     

    Tax Slabs for AY 2021-22

    Senior and Super Senior Citizens can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)

    The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.
     

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    For Senior Citizen i.e. Resident Individual, 60 years or more but less than 80 years of age at anytime during the previous year:

    Existing Tax Regime New Tax Regime u/s 115BAC
    Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
    Up to ₹ 3,00,000 Nil Up to ₹ 2,50,000 Nil
    ₹ 3,00,001 - ₹ 5,00,000 5% above ₹ 3,00,000 ₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000
    ₹ 5,00,001 - ₹ 10,00,000 ₹ 10,000 + 20% above ₹ 5,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000
    Above ₹ 10,00,000 ₹ 1,10,000 + 30% above ₹ 10,00,000 ₹ 7,50,001 - ₹ 10,00,000 ₹ 37,500 + 15% above ₹ 7,50,000
        ₹ 10,00,001 - ₹ 12,50,000 ₹ 75,000 + 20% above ₹ 10,00,000
        ₹ 12,50,001 - ₹ 15,00,000 ₹ 1,25,000 + 25% above ₹ 12,50,000
        Above ₹ 15,00,000 ₹ 1,87,500 + 30% above ₹ 15,00,000

     

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    For Super Senior Citizen i.e. Resident Individual 80 years or more in age at anytime during the previous year:

    Existing Tax Regime New Tax Regime u/s 115BAC
    Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
    Up to ₹ 5,00,000 Nil Up to ₹ 2,50,000 Nil
    ₹ 5,00,001 - ₹ 10,00,000 20% above ₹ 5,00,000 ₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000
    Above ₹ 10,00,000 ₹ 1,00,000 + 30% above ₹ 10,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000
        ₹ 7,50,001 - ₹ 10,00,000 ₹ 37,500 + 15% above ₹ 7,50,000
        ₹ 10,00,001 - ₹ 12,50,000 ₹ 75,000 + 20% above ₹ 10,00,000
        ₹ 12,50,001 - ₹ 15,00,000 ₹ 1,25,000 + 25% above ₹ 12,50,000
        Above ₹ 15,00,000 ₹ 1,87,500 + 30% above ₹ 15,00,000

     

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    Note: 

    1. No increased basic exemption limit benefit will be available to Senior and Super Senior Citizens in the New Tax Regime
    2. The rates of Surcharge and Health & Education cess are same under both the tax regimes 
    3. Rebate u/s 87-A Resident individual whose Total Income is not more than ₹ 5,00,000 is eligible for a Rebate of 100% of income tax or ₹ 12,500, whichever is less. This Rebate is available in both tax regimes

     

    Surcharge, Marginal Relief and Health & Education cess    

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    What is Surcharge?
    Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of Income Tax calculate as per applicable rates
    • 10% - Taxable Income above ₹ 50 lakh – Up to ₹ 1 crore
    • 15% - Taxable Income above ₹ 1 crore - Up to ₹ 2 crore
    • 25% - Taxable Income above ₹ 2 crore - Up to ₹ 5 crore
    • 37% - Taxable Income above ₹ 5 crore
    • Maximum Surcharge on Income by way of Dividend or Income under the provision of 111A, 112A and 115AD is 15%
    What is Marginal Relief?
    Marginal relief is a relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional Income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of Income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or  ₹ 5 crore respectively
    What is Health and Education cess?
    Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)

     

     

    Investments / Payments / Incomes on which I can get tax benefit

    Section 24(b) – Deduction from Income from house property on interest paid on housing loan and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New tax Regime.

    Interest on loan u/s 24(b) allowable is tabulated below:
     

    Nature of Property When Loan was taken Purpose of Loan Allowable (Maximum Limit)
    Self-occupied On or after 01/04/1999 Construction or purchase of house property ₹ 2,00,000
    On or after 01/04/1999 For Repairs of house property ₹ 30,000
    Before 01/04/1999 Construction or purchase of House property ₹ 30,000
    Before 01/04/1999 For Repairs of house property ₹ 30,000
    Let-out Any Time Construction or purchase of House property Actual value without any limit

     

    Tax deductions specified under Chapter VIA of the Income Tax Act

    These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD(2) which will be allowable under New Tax Regime as well.
     

    80C, 80CCC, 80CCD (1)

    Deduction towards payments made to 

    80C
    • Life Insurance Premium
    • Provident Fund
    • Subscription to certain equity shares
    • Tuition Fees
    • National Savings Certificate
    • Housing Loan Principal
    • Other various items
       
    80CCC

     Annuity plan of LIC or other insurer towards Pension Scheme

    80CCD (1)
     Pension Scheme of Central Government
    group Combined deduction limit of ₹ 1,50,000

     

    80CCD (1B)
    Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)
    group Deduction Limit of ₹ 50,000

     

    80CCD (2)

    Deduction towards contribution made by an employer to the Pension Scheme of Central Government

    If Employer is a PSU, State Government or others

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    Deduction limit of 10% of salary
    If Employer is Central Government 
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    Deduction limit of 14% of salary

     

    80D

    Deduction towards payments made to Health Insurance Premium & Preventive Health check up

    For Self /  Spouse or Dependent Children

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    ₹ 50,000 if any person is a Senior Citizen 
    ₹ 5,000 for preventive health check up, included in above limit
    For Parents
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    ₹ 50,000 if any person is a Senior Citizen 
    ₹ 5,000 for preventive health check up, included in above limit

     

    Deduction towards medical expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage

    For Self /  Spouse or Dependent Children
    group Deduction limit is ₹ 50,000
    For Parents
    group Deduction limit is ₹ 50,000

     

    80DD
    Deduction towards payments made towards Maintenance or Medical Treatment of a Disabled dependent or paid / deposited any amount under relevant approved scheme
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    Flat deduction of
    ₹ 75,000 available for a person with Disability, irrespective of expense incurred
    The deduction is
    ₹ 1,25,000 if the person has Severe Disability (80% or more)

     

    80DDB
    Deduction towards payments made towards Medical Treatment of Self or dependant for specified disease
    group Deduction limit of
    ₹ 40,000
    (₹ 1,00,000 if Senior Ctizen)

     

    80E
    Deduction towards interest payments made on loan for higher education of Self or relative
    group Total amount paid towards interest on loan taken

     

    80EE
    Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
    group Deduction limit of
    ₹ 50,000
    on the interest paid on loan taken

     

    80EEA
    Deduction towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction should not have been claimed u/s 80EE
    group Deduction limit of
    ₹ 1,50,000
    on the interest paid on loan taken

     

    80EEB
    Deduction towards interest payments made on loan for purchase of electric vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
    group Deduction limit of
    ₹ 1,50,000
    on the interest paid on loan taken

     

    80G

    Deduction towards Donations made to certain Funds, Charitable Institutions, etc.

    Donation are eligible for deduction under the below categories

    Without any limit
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    100% deduction
    50% deduction
    Subject to qualifying limit
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    100% deduction
    50% deduction

     

     

    80GG

    Deduction towards rent paid for house & applicable only for whom HRA is not part of Salary

    Least of the following shall be allowed as deduction

    Rent paid reduced by 10% of Total Income before this deduction ₹ 5,000 per month 25% of Total Income before this deduction

    Note: Form 10BA to be filed for claiming this deduction

     

    80GGA

    Deduction towards Donations made for Scientific Research or Rural Development

    Donation are eligible for deduction under the below categories

    Research Association or University, College or other Institution for
    • Scientific Research
    • Social Science or Statistical Research
    Association or Institution for 
    • Rural Development
    • Conservation of Natural Resources or for Afforestation
    PSU or Local Authority or an Association or Institution approved by the National Committee for carrying out any eligible project 
    Funds notified by Central Government for
    • Afforestation
    • Rural Development
    National Urban Poverty Eradication Fund as setup and notified by Central Government 

    Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding  2000/- or if Gross Total Income includes Income from Profit / Gains from Business / Profession

     

    80GGC
    Deduction towards Donations made to Political Party or Electoral Trust
    group Deduction of total amount paid through any mode other than cash

     

    80TTB
    Deduction on interest received on deposits by Resident Senior Citizens
    group Deduction limit of
    ₹ 50,000

     

    80U
    Deductions for an individual taxpayer with Disability
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    Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred
    Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred 

     

    In addition to tax benefits applicable regardless of age of taxpayer, there are certain enhanced / additional benefits for Senior / Super Senior Citizen. The additional benefits are listed below:

    Paper filing of Income Tax Return

    Super Senior Citizens (aged 80 years or more) have the option to submit their ITR using Form 1 or 4 in offline / paper mode. The e-Filing option also remains available to them.

     

    Relief from payment of Advance Tax

    As per Section 208, every person whose estimated tax liability for the year is ₹ 10,000 or more, shall pay his tax in advance, in the form of Advance Tax.  But, Section 207 gives relief from payment of Advance Tax to a Resident Senior Citizen. Thus, a Resident Senior Citizen, not having any Income from Business or Profession, is not liable to pay Advance Tax.

     

    Income tax deduction on interest on bank deposits

    Section 80TTB of the Income Tax Act allows tax benefits on interest earned from deposits with banks, post office or co-operative banks. The deduction is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen. Both the interest earned on saving deposits and fixed deposits are eligible for deduction under this provision.

    Also, u/s 194A of the Income Tax Act, no Tax is Deducted at Source (TDS) on interest payment of up to ₹ 50,000 by the bank, post office or co-operative bank to a Senior Citizen. This limit is to be computed for every bank individually.

     

    Tax benefits with respect to medical insurance and expenditure

    According to Section 80D of the Income Tax Act, Senior Citizens may avail a higher deduction of up to ₹ 50,000 for payment of premium towards medical insurance policy. The limit is ₹ 25,000 in case of Non-Senior Citizens.

    Further Section 80DDB of the Income Tax Act allows tax deduction on expenses incurred by an individual on himself or a dependent towards the treatment of specific diseases as stated in the act. The maximum deduction amount in case of a senior citizen is ₹ 1 lakh (₹ 40,000 for Non-Senior Citizen taxpayers).

    Page Last Reviewed or Updated: 19-Jul-2021