Good news for 75-plus retirees

The Union Budget 2021 brought good news for all the retirees aged 75 & above as now, they don’t need to file income tax returns. However, this exemption is subject to conditions. And the conditions are: 

1. The senior citizen should be a resident of India and must be 75 years of age or more during the financial year for which the tax has to be paid. 

2. They must receive the pension and interest income from the same bank. 

3. Only certain specified banks are allowed. 

4. A declaration should be given to the bank. 

Any other interest income from any other source or any kind of capital gains would attract tax. Therefore, in the real sense, this piece of information brought a smile to some faces and still, turned out to be meaningless for many.  

Therefore, retirees aged 75 & above relying on mutual funds, stocks, bonds, etc. for regular income, need to file the income tax returns. And hence, for many retired investors, this change won’t matter much.