Finance Act 2021 inserted a new section 194P which provided conditions for exempting senior citizens from filing Income Tax returns aged 75 years and above. CBDT via Notification No. 99/2021 dated 2nd September 2021 has notified Income Tax (26th Amendment) Rules, 2021 which states the manner of availing exemption u/s 194P.
The amendment rules have inserted a new Rule 26D which can be summarised as under :
- Furnishing of declaration by Senior Citizen in Form 12BBA.
- The form shall be submitted to specified bank in paper form duly verified.
- Specified bank shall, on receipt of Form, compute Total income of senior citizen and deduct applicable taxes on it.
- While computing Total income, deductions under chapter VI-A shall be allowed on furnishing of evidences.
- Specified bank shall furnish such Form along with the evidences of deductions under Chapter VI-A to Principal Chief commissioner or Chief Commissioner of Income Tax.
For Specimen of Form 12BBA and other forms which have been updated accordingly, kindly refer official notification by clicking here.
 Rules, 2021 - Manner for availing exemption u/s 194P of Income Tax Act, 2021){kind=link}
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