Points to be taken care while preparing

Income Tax Return of Senior Citizen

(Financial Year 2019-20)
ABHAY SINGH
MANAGER (F&A)
8800775563
Abhay.singh1@powergridindia.com

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Senior Citizen
 A Person who has Completed the Age of 60 years
during the previous year but less than 80 years on
the last day of the previous year i.e. the Year for
which he is filing the Income Tax Return.
 A person will be considered to have attained a
particular age on March 31 if his or her birthdate is
a day later on April 1.
 Supreme Court Ruling – “while counting the age of
the person, whole of the day should be reckoned
and it start from 12 O' clock in the midnight and he
attains the specified age on the preceding, the
anniversary of his birthday.” 2
Income Tax Slab for Senior Citizen

 Income up to Rs 3 lakh is exempt from tax.

 Income from Rs 300,001 to Rs 5 Lakh is taxed @ 5
per cent.
 From Rs 500,001 to Rs 10 lakh @ 20 per cent.
 above Rs 10 lakh at 30 per cent.

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Benefit to Senior Citizen
under Income Tax Law.

 A resident Senior Citizen who does not have

income chargeable under the head ‘Profits and
Gains of Business or Profession’ are not required
to pay advance tax and such senior citizen shall
be allowed to discharge his tax liability (other
than TDS) by payment of self assessment tax.

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 Bank interest (Section 80TTB) This
provision allows deduction of up to Rs.
50,000 to the senior citizen who has
earned interest income from deposits with
banks or post office or co-operative banks.
Interest earned on saving deposits and
fixed deposit, both shall be eligible for
deduction.
 Deduction under Section 80TTA is not
available to Senior Citizen.
 Effective Extra benefit to senior Citizen is
Rs. 40000.
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 Section 194A - no TDS from payment of
interest to a senior citizen up to Rs.
50,000.
 Senior citizens can claim exemption on the
TDS on interest income earned on
deposits. It can be done by submitting
Form 15H under Section 197 of the IT Act

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Form 15H
 Form 15H is used for avoiding the tax
deduction at source.
 Senior Citizens can submit Form 15H even if
their Total Income from interest on
securities/interest other than “interest on
securities”/units/amounts exceeds maximum
amount not chargeable to tax (Rs. 3,00,000)
but if tax payable by them is NIL.

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 You need to submit form 15H to banks if interest
from one branch of a bank exceeds 50000/- in a
year.
 This form should be submitted to all the
deductors to whom you advanced a loan. For
example you have deposit in three SBI bank
branches Rs.100000 each. You must submit the
Form 15H to each branch.

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 Submit this form before the first receipt of your
interest. It is not mandatory but it will avoid
the TDS deduction. In case of the delay, the
bank may deduct the TDS and issue TDS
certificate at the end of the quarter.

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Income Tax Return Form
Choose Return Form applicable to you as per your
source of Income.
Who can file ITR-1 SAHAJ :
 An individual being a resident (other than not
ordinarily resident) having total income up to Rs.
50 lakh.
 A resident Indian earning Salary Income
 Pension Income
 Income from House Property.
 Interest Income from Fixed deposit and else

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Income Tax Return Form
Who cannot file ITR-1 :
 Non- resident Individuals
 Agriculture Income > Rs. 5000
 Having more than 1 House property
 Individual who is either Director in a company
or has invested in unlisted equity shares of a
company
 Businessman
 Taxpayers having taxable income as dividend
from domestic companies, you are not eligible
to file ITR-1 form
 Those with joint ownership of a house property
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cannot file ITR-1 or ITR-4

Income Tax Return Form
Who can file ITR-2 :
 Individuals and HUF not having Income from
Business & Profession.
 A Non Resident
 Having capital gains income
 Income from more than one House Property
 Agriculture income more than Rs.5000/-

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Income Tax Return Form
Who can not file ITR-2 :
 Individual who is either Director in a company
or has invested in unlisted equity shares of a
company.
 Non Individuals like Company, Firm, LLP, etc.
 Having Income From Business

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Income Tax Return Form
Who can file ITR-3 :
 Individuals & HUF having income from Business
& Profession
 All who cannot file ITR 1 or ITR 2
 Who can not file ITR-3 :
 Presumptive Business or Professional income
 Company, Firm, LLP, Trust, Local Authority, etc.

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Income Tax Return Form
Who can file ITR-4 Sugam :
 Individuals, HUF and Firms (other than LLP) to
declare income from Presumptive Business (u/s
44AD, 44ADA, 44AE) being a resident having
total income up to Rs.50 Lakh having income
from salaries, on house property, other sources
(interest etc.) and agriculture income up to
Rs.5000/-
 Professional Income less than Rs.50 Lakhs
 Business income less than Rs.2 Crore

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Income Tax Return Form
Who can not file ITR-4 Sugam :
 Business profit less than 6%
 Professional Profit less than 50%
 Non Resident
 Individual who is either Director in a company
or has invested in unlisted equity shares of a
company.
 In case of Income from Commission or
Brokerage.
 Those with joint ownership of a house property
cannot file ITR-1 or ITR-4
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Interest Accrued on PF after
retirement date

 Under the tax laws, the accumulated balance,

as it stands on the date of Retirement is
considered as an exempt income.
 Any Interest Accrued in the EPF account after
date of retirement would be taxable income on
accrual basis.

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E Filing of ITR
E-filing is preferred to offline filing. Major benefits of
filing your income tax returns electronically are :
 Quick Processing.
 Convenient- You can file your returns anytime,
anywhere, as long as you have a mobile device or a
laptop and an internet connection.
 Accuracy - E-filing Utility comes with built-in
validations to reduce errors to a considerable
extent.
 Availability of filled returns online - All the Returns
filled by you is available for download on Income Tax
E-filing website.
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Who should e-file income tax
returns
 All the taxpayers are mandatorily required to file their
ITRs electronically except individuals over the age of
80 years who have the option of filing the ITR in
paper format as well.
 Fill income tax returns offline and upload XML on the
official website: IncomeTaxIndiaeFiling.gov.in
 Prepare and submit ITR 1 online.
 You can E-Verify the ITR using Digital Signature
Certificate or Adhar OTP.
 You can E-Verify the ITR through Net banking login.
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Checklist for e-Filing
Check your tax credit - Form 26AS vs. Form 16
 You should check Form 26AS before filing your
returns. It shows the amount of tax deducted from
your salary and deposited with the IT department by
your employer. You should ensure that the tax
deducted from your income as per your Form 16
matches with the figures in Form 26AS.
 Form 26AS also shows all TDS Deducted from
income credited to you. You have to include all the
incomes shown in your 26AS in your ITR. Any
mismatch between your ITR and Form 26AS may
result into a notice from the IT department. 20
Checklist for e-Filing
 Claim 80G - You can claim deductions under section 80G on
donations made to charitable institutions.
 Interest statement - Interest on savings accounts and fixed
deposits – Get all the interest Certificate, Update the Bank Pass
Book/ Bank Statement and calculate interest credit on them.
 In addition to the above, have the following at hand.
 Last year tax return
 TDS (Tax Deducted at Source) certificates
 Profit and Loss (P&L) Account Statement if applicable.
 Calculation of Capital Gain.

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Checklist for e-Filing

Reporting House Property income :

 Address of the house property
 Details of the co-owners including their share in the
mentioned property and PAN details
 Certificate for home loan interest
 Date when the construction was completed, in case
under construction property was purchased
 Name of the tenant and the rental income, in case the
property is rented
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Checklist for e-Filing

Reporting capital gains:

 Stock trading statement is required along with
purchase details if there are capital gains from
selling the shares
 In case a house or property is sold, you must
sought sale price, purchase price, details of
registration and capital gain details
 Details of mutual fund statement, sale and
purchase of equity funds, debt funds, ELSS and
SIPs
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Checklist for e-Filing

Reporting other income:

 The income from interest is reported. In case of
interest accumulated in savings account, bank account
statements are required
 Interest income from tax saving bonds and corporate
bonds must be reported
 The income details earned from post office deposit
must be reported

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Interest and Penalties
 The Rate of Interest on late deposit of Income tax is 1% per
month (simple interest) would be applied on the tax amount
outstanding.
 Not providing PAN or quoting wrong PAN
 If you do not provide your PAN number Bank or other deductor -
20% TDS will be deducted If the PAN you quoted is incorrect, a
penalty of Rs 10,000 may be slapped.
 Concealing Income to evade tax
The penalty for not proving correct details of your income or
concealing income tax will be 100% to 300% of the tax evaded.

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Cash Transaction – Limit &
Penalty Section 269ST
 Section 269ST states that no person shall receive an amount
of Rs 2 Lakh or more:
 In aggregate from a person in a day; or
 In respect of a single transaction; or
 In respect of transactions relating to one event or occasion from a
person.
 For Example – You sale your used car and received payment in
cash – this section will apply.
 Penalty under Section 269ST
 in case of failure to comply with provisions of section 269ST,
penalty amount equal to the amount of receipt is payable.
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THANK YOU

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