Section 194P- Exemption from ITR filing for senior citizen

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Laxmi Navlani

Income Tax
Income Tax Filing
Section 194P
Last updated on February 16th, 2023

Union Finance Bill 2021 came up with the introduction of a new section 194P. It provides conditions for exempting from filing Income Tax returns to senior citizens aged 75 years and above. New Section 194P is applicable from 1st April 2021.

What is section 194P?

Section 139 of the Income Tax Act provides that every person being an individual shall furnish a return of his income if his gross total income during the previous year exceeded the basic exemption limit.

Section 194P of Income Tax Act was introduced in order to provide relief to senior citizens to reduce the compliance of filing of ITR.

As per Section 194P of Income Tax Act, in the case of a specified senior citizen, the specified bank will be responsible for the TDS deduction of such senior citizens after considering the deductions under Chapter VI-A and rebate under Section 87A

Meaning of the term specified senior citizen

For the purpose of Section 194P specified senior citizen means:

Declarations required by specified senior citizens

Specified senior citizens have to make these declarations to enable the specified bank to deduct the TDS on total income.

Meaning of the term specified bank

If all conditions are satisfied, there will not be any requirement of furnishing a return of income by such senior citizens.


As per the seventh proviso to section 139(1) of income tax act a person who is otherwise not required to furnish the ITR is mandated to file the return even if any one of the following conditions are met:


What is Section 87 A in income tax?

A rebate under section 87A is one of the income tax provisions that help taxpayers reduce their income tax liability. One can claim an income tax rebate of a maximum of INR 12,500 if the total income does not exceed INR 5 lakh in a financial year.

Who is a senior citizen as per Income Tax Act?

As per Income Tax Act 1961, an individual is treated as a senior citizen once he attains the age of 60 years or more and he will be treated as a super senior citizen once he attains the age of 80 years or more.

When is tax filing not mandatory?

As per the tax provisions, filing income tax returns is mandatory where the gross total income of an individual is more than the basic exemption. Here, Gross total income would mean the total income after loss adjustment but before any deductions under chapter VI-A.

Got Questions? Ask Away!

  1. Healthcare should be treated as a priority. Only once we successfully recover from this, our economy can gain momentum again.

  2. Can you please provide me more information with respect to “Tax on PF interest from contribution exceeding 2.5 lakhs” Does this includes employer contribution and VPF?

  3. The audit limit increased from 5 crores to 10 crores. Do I have to file for tax audit if my turnover is less than 10 crore?

  4. Hey @ViraajAhuja47

    Employee’s contributions to EPF was tax-deductible under section 80C while the employer’s contribution is completely tax-free. However, as per the recent announcement in Budget 2021 , interest earned on annual PF contribution exceeding INR 2.5 lakhs from April 2021 will now be taxable. Any withdrawal after the specified period (5 years) is exempt from income tax.

    Hope this helps!