A guide on Income Tax for Senior Citizens- Benefits, Steps involved in filing

Income Tax Returns with FAQs (A write up by Vijayaraghavan r- dt 05.06.2022)

Part A
Benefits available to Senior Citizens (for FY 2021-22 and FY 2022-23)
Basic Exemption Limits

For ordinary individual tax payers, the basic exemption limit, from payment of Income
Tax is Rs. 2.50 Lakhs. However, for Resident Senior Individual Citizens who have
completed the age of 60 years and yet to complete 80 years the limit is Rs. 3 lakhs.
For Resident Individual tax payer over 80 years (Super Senior Citizen) does not have
to pay any tax up to Rs. 5 lakhs annual income.

Some popular deductions available in old tax regime

Those who are eligible to file ITR 1 can opt for Tax regime every year, before filing
income tax returns. Every year this can be changed. This is irrespective of the fact that
whatever the regime is option given to the ex-employer for TDS on pension.

Section 80C

Maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakhs
only. Deposits under Senior Citizen Savings Scheme, Tax Savings Deposit Scheme,
5 Year Time Deposits in PO, PPF, payment of Life Insurance premium for Self, Spouse
or any child of the individual, NSC, ELSS, FBF etc.
Deduction under Sec 80 CCD (1) which comes under Combined ceiling with Sec
80 C—NPS contribution- Up to Rs150,000/-
Deduction under Sec 80CCD(1B)-NPS contribution (Maximum age limit 70 Years)
Rs50,000/- This is over and above the deduction of Rs.1.50 lakhs available under
section 80C of Income Tax Act. 1961.

Deduction under Section 80D

Medical Insurance Premium for Self and family (one must be Senior Citizen). In case
if no health insurance premium is paid on the health of such Senior Citizens, general
Medical Expenditure can be claimed up to Rs 50,000/-. Additional deductions up to a
maximum of Rs 50,000/- can be claimed towards parents Health insurance and in its
absence General medical expenditure. Within the Limit of Rs 50,000/- Amount paid
for preventive health check-up, for Self and family, up to Rs. 5.000/ can also be
claimed. (Note”-Family-" means the spouse and dependent children of the pensioner).

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 1
Deduction under Section 80 DDB

In addition to Sec 80 D, a Senior Citizen can claim up to Rs100,000/- for treatment

under specified diseases.

The deduction can be allowed on the basis of a prescription from an oncologist, a

urologist, nephrologist, a hematologist, an immunologist or such other specialist, as
mentioned in Rule 11DD. However, the amount of the claim shall be reduced by the
amount if any received from the insurer.

Section 80GG

Applicable for pensioners who do not own a residential house and paying rent.
Maximum deduction -Rs 60,000/- (Rs 5,000 per month). If conditions are satisfied
then he can claim deduction u/s 80GG for house rent paid, subject to a maximum of
Rs 5,000/- per month, with the least of the following

1) Rent paid minus 10 percent the adjusted total income.

2) 25 percent of the adjusted total income

Important conditions are

• He has paid house rent for the residence.
• He or his spouse or Minor Child should not have a residential house where he
ordinarily resides.
• Deductions cannot be claimed, If any residential accommodation is owned by
the assessee, at any other place, as self - occupying, and the concessions in
respect of self-occupied house are claimed by him for that property.
• A declaration on Form 10BA should be submitted

Deductions under Section 80DD

Deductions in respect of expenditure on dependents with disability- Rs75,000/- per
annum. (For severe disability dependent-it is Rs1,25,000/-
Deductions under Section 80 U
Deductions in respect of a person with disability-Rs 75,000/-( for Severe disability -Rs
1,25,000/-)
Deductions under Section 80 EEB
Deduction in respect of the interest payable on loan taken for the purpose of purchase
or an electric vehicle-Maximum-Rs1,50,000/-
Deductions under Sec 80 G
Deductions on respect of donations to certain funds, charitable institutions, etc.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 2
Section 80 G provides for deductions on account of donation made to various funds,
charitable organizations etc. In cases where donations are made to the PM Cares
Fund, The Chief Minister's Relief Fund etc. 100% deductions are allowed subject to
conditions. This deduction can only be claimed when the contribution has been made
via cheque or draft or in cash. But deduction is not allowed for donations made in cash
exceeding Rs 2,000. In-kind contributions such as food material, clothes, medicines
etc. do not qualify for deduction under section 80G. For donations to Government
related specified funds deduction is allowed up to 100% of the donation (eg-PM
/CM/State relief fund) with out ceiling. For Others deduction is allowed 50% of the
donation or 10% of adjusted total income whichever is less (Adjusted Total
Income=Gross Income-Deductions like 80C, 80D etc).
Deductions under Sec 80 E
Interest on Education loan for higher education of Self, Spouse, Children.
Maximum up to 7 Financial years after repayment of interest commences.
Standard Deduction

In case of salaried persons Standard Deduction of Rs.50,000 is allowed. This is

applicable to pensioners also. (Under Sec 16 allowed from total annual
Salary/Pension)

For family pensioners

No standard deduction. For Family Pensioners under Sec 57, a deduction of a sum
equal to thirty-three and one-third per cent of such income or fifteen thousand rupees,
whichever is less, is allowed. Family Pension is to be treated as other income.

Rebate under Section 87A

Under Sec 87 A, Resident Individuals can claim rebate, when Taxable Income after
all deductions falls below Rs 500,000/-

The rebate is limited to Rs 10,000/- for Senior Citizens (Others -Rs12,500). This
benefit is available under New Tax regime also.
Which means that if the total tax payable for a Senior Citizen is lower than Rs 10,000,
such lower amount of tax will be the rebate under section 87A. This rebate is applied
on total tax before adding Education Cess (4%).

Deduction for interest from Banks and Post Office under Section 80 TTB

For individuals other than Senior Citizens, a deduction up to Rs. 10,000 was available
in respect of interest from saving bank account under Sec 80 TTA.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 3
Senior citizens can claim deduction under 80 TTB, for Interest on Savings Bank plus
Interest on Term Deposits up to Rs. 50,000/- in a financial year. (Interest from Banks,
Post offices and Coop Societies)

TDS on Interest on Deposits (Sec 194A)

Annual Exemption Limit for Deposits standing in the name of First named depositor
Others-Rs 40000
Senior Citizens-Rs 50000
If a Senior Citizen Whose aggregate annual interest on Deposits (including RD)
exceeds Rs 50,000/-, can furnish 15 H at the beginning of the FY (or at the time of
opening/renewing the deposits) to avoid TDS, in case if his estimated income tax
liability is Zero.

Eligibility to submit 15 H

If the Tax Liability would be Nil. (i.e.) If the aggregate annual taxable income would
not exceed Rs 300,000/- (after taking in to account Standard deduction and other
eligible deduction like 80C, 80 D, 80 TTB etc). (e.g., if the Annual Pension Income is
3,60,000, Annual interest income 2,00,000/- and eligible Deductions, under 80 C is
1,50,000/-, Under 80 D is Rs 30,000/-, 80 TTA is Rs 50,000/- and Standard Deduction
is Rs 40,000/-. Total taxable income falls below Rs300,000/- and the Senior Citizen
can file 15 H)

Senior Citizens are eligible to submit 15 H, even if the aggregate annual interest
exceeds Rs 3 Lakhs (basic exemption limit), if the estimated income Tax liability is
Nil. In 15 G the individual is not eligible to submit, if the aggregate interest income
exceeds Rs 2,50,000/-though the estimated tax liability is Nil. This is the major
difference between 15G and 15 H.

Exemption from Payment of advance tax:

In cases where the estimated tax liability is more than Rs. 10,000/- in a year, advance
tax has to be paid in four instalments. However senior citizens are exempted from
requirement of payment of advance tax provided they do not have any income under
the head “Profits and Gains of Business or Profession”. Senior citizens can discharge
their tax liability at the time of filing their ITR, before the normal due date for filing
returns. However, TDS on interest on Deposits and Pension will be applicable to
Senior Citizens.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 4
 Part B

Frequently Asked Questions- answered by the author

1. Is a Senior Citizen exempts from filing income tax return? What is the
Special concession extended to Senior Citizens who are 75 Years and
above in Finance Act 2021 in filing IT returns?
Income-tax Act, 1961 provides no exemption to senior citizen or very senior
citizen from filing of return of income. However, to provide relief to the senior
citizens (whose age is 75 years or more) and to reduce the compliance
burden on them, the Finance Act, 2021, has inserted a new Section 194P.
This provision requires a banking company to deduct tax under this
provision if deductee is maintaining an account with it in which he is
receiving his pension income. The tax is required to be deducted under this
new provision if the recipient is a resident individual whose age is 75 years
or more at any time during the year and the following conditions are fulfilled:
a) Total Income of the deductee consists only income in the nature of
pension and interest received or receivable from any account maintained
with deductor (such bank); and
b) Deductee has furnished a declaration to deductor containing prescribed
particulars.
If the above conditions are satisfied, the deductor shall compute the income
of deductee after giving effect to the deduction allowable under Chapter VI-
A and rebate under Section 87A. Tax on such income is required to be
deducted on the basis of rates in force.
If tax is deducted from the income of such senior-citizen, he shall not be
liable to furnish the return of income for the previous year in which tax has
been deducted. This is applicable from 1st April 2021.

2. Is a Very Senior Citizen is exempted from filing Income Tax returns?

Senior citizens of age 75 years and above, Income Tax returns need not
be filed, if conditions are satisfied under Section 194 P.

From Assessment year 2019-20 onwards, a very senior citizen filing his
return of income in Form ITR 1/4 can file his return of income in paper mode,
i.e., for him e filing of ITR 1/4 (as the case may be) is not mandatory.
However, he may go for e-filing if he wishes.

Income-tax Act, 1961 provides no exemption to senior citizen or very senior

citizen from filing of return of income. However, to provide relief to the senior
citizens (whose age is 75 years or more) and to reduce the compliance
burden on them, the Finance Act, 2021, has inserted a new section 194P.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 5
3. Is it mandatory to file IT returns, even if the Tax liability is Zero?
It is mandatory to file Income Tax returns, under Section 139 of Income Tax
Act – In case of Senior Citizens-If annual pension income + other Income
Exceeds Rs three lakhs. For other than Sr Citizens if annual total income
exceeds Rs two lakhs and fifty thousand. The total income to be reckoned
without giving effect to any deduction eligible under various sections.

Even if a person’s Tax liability would be Nil after availing relevant

exemptions, it is mandatory to file Income Tax returns. Few years back, it
was of no consequence for a person in not filing IT returns, if the taxable
income is Nil and he /she can file the returns belatedly too.

But presently the position is different. IT returns cannot be filed even

belatedly after the completion of assessment year.
The penalty for Non filing Income tax returns ranges from Rs1000/- to Rs
10,000/-. Hence, it becomes necessary for those who are having annual
income exceeding others- Rs 250,000/ Senior Citizens-Rs 300,000/- to file
Income Tax returns with in the stipulated due date.

4. What is the penalty for Non-Payment of Tax and for failure to file IT returns
when the income is taxable?
Non-payment of tax attracts interests, penalty and prosecution. The
prosecution can lead to rigorous imprisonment from 3 months to 2 years
(when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment
could be 6 months to 7 years).

5. What are the options available to a Senior Citizen, incase if he is unable

to calculate Tax and file return electronically?
If one cannot calculate Tax and file Income Tax return, he/she can seek the
help of TRP (Tax Return Preparer) or Auditor. For Income Tax Authorized
Tax Return Preparer Visit https://www.incometaxindia.gov.in and click on
'read more' at 'Tax Payer Services' button. Before approaching TRP/Auditor
one should keep ready, Annual Pension Statement, Interest Certificate from
Banks, TDS Certificates if any, Income from Other Sources, Proof of
Savings, Investments, Proof for other deductions if claimed

6. Is a Senior Citizen exempted from payment of advance Tax?

As per section 208, every person whose estimated tax liability for the year is
Rs. 10,000 or more, shall pay his tax in advance, in the form of "advance tax".
However, section 207 gives relief from payment of advance tax to a resident
senior citizen.
As per section 207 a resident senior citizen (i.e., an individual of the age of 60
years or above during the relevant financial year) not having any income from
business or profession, is not liable to pay advance tax.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 6
7. Senior Citizens receiving Pension and interest income need not pay
advance Tax as per Income Tax rules. Then why TDS on pension /interest
on Deposits is being insisted/recovered?

Though Senior Citizens are exempted from Advance Tax provisions, for TDs
purpose Pension is treated like Salary Income and there is a responsibility cast
on the ex-employer to recover TDS on pension as applicable to Salaries. But
for this only pension income will be reckoned. Likewise, if the aggregate interest
on deposits exceeds RS50,000/- banks will deduct TDS on interest on deposits
if 15 H is not available.
If the aggregate annual pension income is less than Rs 5 lakh, income Tax
liability would be Nil and there is no need for such pensioners to exercise any
option or submit any proof for savings.

8. What are the benefits available for Senior Citizens in respect of interest
on Deposits, in old Tax regime?
Section 80TTB of the Income Tax law gives provisions relating to tax benefits
available on account of interest income from deposits with banks or post office
or co-operative banks of an amount up to Rs. 50,000 earned by the senior
citizen (i.e., an individual of the age of 60 years or above). Interest earned on
saving deposits and fixed deposit; both shall be eligible for deduction under this
provision.
Banks include all commercial Banks including Private Sector Banks and Coop
Banks.
Section 194A -no tax shall be deducted at source from payment of interest by
bank or post-office or co-operative bank to a senior citizen up to Rs. 50,000.
This limit is to be computed for every bank individually.
For aggregate annual interest income beyond Rs 50,000/- Senior Citizens can
seek exemption from TDS by furnishing F 15 H, if their income tax liability would
be Nil after availing all eligible deductions.
Other than Senior Citizens, if the aggregate annual interest itself exceeds Rs
250,000/- they cannot furnish 15G even if their Tax liability would be Nil.
But in case of Senior Citizens, there is a concession in furnishing 15 H that
even if the aggregate annual interest income Exceeds RS3 lakh, they can very
well furnish 15H, if their income tax liability would be Nil C, 80 D etc. After
availing all deductions like Standard Deduction, Rebate under Sec 87, 80TTB.

9. Under Sec 80D if medical insurance cover is available, is there any other
expenses can be claimed?
Within the ceiling of Rs 50,000/- apart from health insurance premium a Senior
Citizen can claim up toa maximum of Rs 5,000/- on account of expenses
incurred on account of preventive health check-up

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 7
 A Senior Citizen can claim a maximum of Rs 50,000/- under Sec 80 D for Self
and Spouse on account of the following. (where he is not having any surviving
Senior Citizen Parents- If they survive or any one survives, an additional Max
of Rs 50,000/- can also be claimed on the same lines . Hence in such cases
total exemption under Sec 80 D can be Rs1,00,000/-)
1. Insurance Premium paid on health of Self and Spouse.
2. Preventive Health Checkup Expenses for Self and Spouse (aggregate
Maximum of Rs 5,000/-)
3. If no medical insurance premium is paid on the health of the Senior Citizens
(Either Self or Spouse) –Medical Expenditure Incurred on the health of the
Senior Citizen for whom there is no Health Insurance Cover can be claimed.
All the above put together should not exceed Rs 50,000/-
Eg-1) A Senior Citizen Can pay Health Insurance Premium of Rs 30,000/- for
Self and Spouse and Rs 5,000/- for Preventive Health Checkup for both or
either one of them. He can claim a maximum of Rs 35,000/- under Sec 80 D.
Eg -2) If a person Incurs Rs 47,000/- towards Insurance Premium for Self and
Spouse and Rs 5,000/- towards preventive Health Check Up-He can claim a
Maximum of Rs 50,000/- under Sec 80 D.
Eg-3) If a person incurs Rs 20,000/- Medical Expenditure for his wife, for whom
there is no health Cover and Rs 30,000/- towards Health Insurance Premium
for Self and Rs 5,000/- towards preventive Health Checkup – he can claim a
Max of Rs 50,000/- under Sec 80 D.

10. If medical Expenses are claimed under Sec 80 D, where there is no Health
Insurance Cover, do we need to keep necessary records?
Yes. Dr Prescription, Pharma Bills and Lab Reports and Bills are to be
preserved to meet any future query /verification from Income Tax Department.

11. How to leverage available deductions to save Income Tax?

If the Taxable income falls below Rs 500,000/- there won’t be any tax liability
due to Tax rebate under Sec 87 A.
In some cases if the taxable income exceeds by a whisker of Rs1,000/- , tax
liability for a Senior Citizen, for entire Rs 501,000/- is payable and IT including
Cess would be Rs 10,608/-. This is because Tax Liability up to Rs 500000 at
5% is Rs10,000/- and beyond Rs 500,000 it is 20 % slab.
In such cases a mere investment of Rs1000/- can save income Tax of
Rs10,608/-
In case if the Senior Citizen exhausted all investment options under 80 C and
80 D and still is taxable income comes around Rs 503,000/- he can save
Rs7,600/- by contributing Rs 3,000/- to PM Cares Relief Fund ( a special fund
Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund
(PM-CARES) for donations to "India's war against Covid-1) or PM National
relief Fund or any State/ Central welfare fund where one can get 100%
exemptions under Sec 80 G.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 8
12. What are the exemptions available on retirements benefits?
Gratuity – Fully exempt for Retired Government employees. For others-Rs 20
lakhs under Sec 10(10) of income tax act. (w.e.f 29th March 2018)
Commuted Value of pension. (One third of pension)
Leave encashment-Maximum Rs 3 lakhs
Provident Fund amount.

13. In which Financial Year the arrears of income is to be accounted for? Is

it during the year of receipt or during the year of retirement?
Arrears of income has to be accounted for in the FY in which it was received.
This is irrespective of the date of retirement.
In case of Leave encashment arrears, Commuted Value on account of revision,
Gratuity arrears, Salary arrears, Pension arrears what are the Income Tax
implications?
Leave encashment at the time of retirement, including VRS, for PSB retiree is
exempted from Income Tax, up to a maximum of Rs 3 lakh. To calculate the
Taxable income entire amount of leave encashment, previously received
should be added to the arrears amount of leave encashment. If the of Rs 3
lakhs is already breached while receiving the amount of leave encashment at
the time of retirement, then entire arrears amount on leave encashment now
received is taxable. It has to be included as income for this FY. If the Total
amount including arrears is crossing Rs 3 lakhs, on receipt of arrears amount,
then the aggregate amount that is exceeding Rs 3 lakh has to be added as
taxable income. If the entire amount of leave encashment falls below Rs 3 lakh,
the arrears amount on leave encashment is fully exempted from income tax.
Commuted value of pension Difference received by PSB retiree - Fully
exempted from income tax. (1/3rd of the 100% of the commuted pension is
exempt for non Govt employees)
Gratuity Arrears- Total Ceiling Is Rs 20 lakh. (Subject to other conditions) If
the aggregate amount is exceeding the limit, the amount received in excess of
Rs 20 lakh is taxable. If not, the arrears amount can be shown as exempted
income while filing returns.
Salary Arrears-Entire arrears amount received is taxable.
Pension Arrears- Entire arrears is taxable.

14. Is there any way to claim relief on arrears amount so received which is
taxable?
Yes. One can claim relief under Sec 89(1). (Arrears of Salary/Pension-
Annexure I) Apart from Salary /Pension arrears, one can claim benefits under
Sec89(1) for gratuity difference received, Commuted Value difference received,
as per information given in the website of Income Tax department. (Annexure
II and IV)

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 9
15. Please explain in Simple terms as what is relief under Sec 89(1)?
For claiming relief under Sec 89(1), one should keep this record ready.
1.The period of arrears and the previous financial Years involved.
2.Income Tax rates for previous financial years involved in the arrears.
3.Income Tax returns for previous financial years involved in the arrears as well
for the current FY.

16. Steps involved in arriving at the relief under Sec 89(1)

1. First add the entire arrears amount with the total income for the FY.
2. Calculate the income tax liability, for the total income including the entire arrears
amount ………………A
3. Bifurcate the arrear amount for each previous FYs including this FY if any.
4. Calculate the income tax liability by adding arrear amount related to this FY if any
to the total income excluding TOTAL arrears amount…………………. B
5. For example, if the arrear amount is related to three previous FYs add the arrear
income pertaining to each FY with the income of each FY and work out the
increased amount of tax liability if any for each FY. (Revised Income Tax-Old
Income tax liability without arrears).
6. If the increase in income tax Liability (difference between old Income tax and
revised Income Tax) for each three FY is C, D and E
7. Total Income Tax due to be paid for this FY=B+C+D+E=X
8. Relief Under Sec 89(1) is Y= A-X
9. Tax to be paid for this FY=X=A-Y {Relief Under Sec 89(1)}

17. Question: What is mandatorily to be done for claiming relief under

Sec89(1)?
The income tax department has made it mandatory to file Form 10E, for claiming
relief under section 89(1). Form 10E has to be filed online in e filing site of income
Tax as per Section 89 of Income tax act.

18. Question: What is form 10E?

For claiming relief under Sec89(1) this form has to be filed on line. This form contains
income figure with arrears and without arrears for the FYs related to the arrear period.

19. Is there any online calculator available to calculate relief under Sec 89?

One can find the Calculator under Tax tools in Income tax India website. Link is given
below.
Relief under section 89 (incometaxindia.gov.in)

Tax Calculators (incometaxindia.gov.in)

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 10
20. Question: How to file form 10E? What are the steps involved?

Form 10E can be filed online on www.incometaxindiaefiling.gov.in

This has to be submitted before filing the return. To claim relief under Sec89(1) this
should have been submitted before filing return.
Steps involved in filing form 10E
1. Log in to efiling website of Income Tax department with log in id and password.
2. In the home page one can see e file menu after dashboard, My account. Click
e file and select income tax forms>form 10E and the current assessment year.
3. There one can see instructions as how to file form 10E.
4. Fill form 10E and annexure I.
5. Please check and verify the form before submission.

21. Question: What are the documents /figures to be kept ready for filing
form10 E?
Keep the following files/ figures ready.
1. IT returns for the previous FYs to which arrear period is covered.
2. Income, Deductions for the previous FYs. Income with arrears, with out
arrears for this FY and deductions for this FY.
3. Total arrear amount and amount bifurcated in to FYs for the period related
to each FY including current FY.

22. How to Calculate Income Tax?

Annual Pension- Rs 50,000 (standard Deduction) + Interest on Deposits+ Other
Income= Gross Income- Eligible Deductions under 80 C, 80 D etc. Calculate
tax liability as per Income Tax slabs given in Part C. Utilize the calculator given
for calculating Income Tax liability in both regimes. Link
https://bankonviju.in/apps/it-regime

23. How to remit Advance or Self-Assessment Tax?

After calculating Tax Liability, net off TDS if any, Income Tax can be remitted
before April or Before July. As IT returns are preferably be filed during II week
of July, it is better to remit tax on or before June so that, in form 26 AS, the tax
remitted can be reconciled before filing returns.
Tax can be remitted at any Authorised Scheduled Bank or through online e-
remittance. While remitting Tax one should be careful in choosing Assessment
Year. For the FY 2021-22, Assessment year is 2022-23. If Tax is remitted
before April, it comes under Advance Tax and after March it is self -assessment
Tax.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 11
 Alternatively one can remit tax online-e payment) at tin-NSDL portal (www.tin-
nsdl.com) by following the steps - Challan Number- ITNS280>IT Major Head--
0021>Assessment Year 2020-21>Self-Assessment Tax Code-300. ( if it is paid
on or before 31st March it is Advance Tax code-100).
One can mention the amount Due as Income Tax, without bifurcating them
into Surcharge, Cess etc. Payment can be made either through Net Banking or
by debit card. Note down the BSR number of the Bank and Challan Serial
Number for further reference. Wait for 4 to 7 days so that it is getting reflected
in 26 AS. One can also verify the status of payment, in tin-nsdl site under
Services> Challan Status Enquiry.
It is preferable to remit a small amount as a test check and if it credited in 26AS
in the individual account, then balance amount can be remitted.

24. What is Form 26 AS? How to access it?

It is annual Tax Statement of the individual given for each Financial Year. It
contains Details of Tax Deducted at Source, Income received, (Under Sec 192
and 194A), Details of Interest received, reported by Banks (for declarations in
15G/15H), Details of Tax paid as advance and self-assessment tax by the
individual.
It can be accessed through e filing portal > view form 26AS (Tax Credit). Also,
it can be accessed direct through Traces Website or through Internet Banking.
One should reconcile the Tax credits in form 26AS with the actual TDS,
periodically without waiting for the end of FY, so that corrective action can be
taken to get the missing credits, if any.
Some additional details are captured in 26 AS like Dividends and other
exceptional income.

How to view 26 AS in new e filing portal?

Viewing 26AS is enabled in new e filing portal
log in to eportal.incometax.gov.in with password (log in id - PAN).
In first row next to Dashboard one can find e file option.
Click efile > Income tax return>there in 4th row, View Form 26 AS menu is
given.

It is important to view and reconcile 26 AS with actual figures and take action
for rectification in case of any omission /discrepancy.

25. What is Annual Information Statement? How to view Annual Information

Statement (AIS)

Annual Information Statement (AIS) is comprehensive view of information for

a taxpayer displayed in Form 26AS. Taxpayer can provide feedback on
information displayed in AIS. AIS shows both reported value and modified value

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 12
 (i.e., value after considering taxpayer feedback) under each section (i.e., TDS,
SFT, Other information). The functionalities under AIS Tab are:

• View Annual Information Statement

• Submit Feedback on AIS
• Upload AIS feedback packet generated from AIS utility
• Download Annual Information Statement (PDF/ JSON)
• Download Specific Information Details (CSV)
• Download AIS Consolidated Feedback (PDF)
• Download AIS Feedback Acknowledgement (PDF)
• Download AIS Feedback Tracker (PDF)

Taxpayer Information Summary (TIS) is an information category wise

aggregated information summary for a taxpayer. It shows processed value (i.e.
value generated after deduplication of information based on pre-defined rules)
and derived value (i.e. value derived after considering the taxpayer feedback
and processed value) under each information category (e.g. Salaries, Interest,
Dividend etc.). The derived information in TIS will be used for prefilling of return,
if applicable. The functionalities under TIS Tab are:
• View Taxpayer Information Summary
• Download Taxpayer Information Summary.
To access AIS
Log in to e filing portal.
In the blue row after dash board, e file, Authorised partners, one can find
>Services.
Place the cursor on services one can find from the drop-down menu at the
bottom
Annual Information Statement (AIS).
Click AIS and click proceed.
Read the instructions
Click AIS, Select FY 2021-22 (One can view for FY 2020-21 too).
In Tax Payer information Summary (TIS), one can find the details of income
under various categories (SB interest is yet to be uploaded) like Salary,
Dividend, Interest from Deposits, Interest from Saving Accounts, Interest from
Income tax refund if any, Sales and purchases of securities during the FY etc.
Then click on AIS (Annual Information Statement)
Under Part A -General Information about the tax payer is given.
Under Part -B
TDS/TCS details (amount of Credit /Income amount), SFT information., Tax
paid details (advance Tax paid, Self-assessment Tax paid), Demand and
refund and other information are given.
One can download AIS and TIS and save it as a pdf file.
While 26 AS is maintained at Traces Website, AIS is maintained by Compliance
portal of Income Tax department.
26AS and AIS are the basis for auto filling the ITR returns. If any mismatch or
discrepancies are in AIS it has to be taken up with the department.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 13
 It is important to reconcile the entries in 26 AS (Traces Website) before filing
the ITR.
Also, one should view AIS to ensure that the income reported there in, is
properly accounted for in the ITR. If the income reported in AIS is not pertaining
to the tax payer, he has to give feedback/report to the Income Tax department
for rectification.

Note - If there is variation between the TDS/TCS information as displayed in

Form26AS on TRACES portal, and the TDS/TCS information as displayed in
AIS on Compliance Portal, the taxpayer may rely on the information displayed
on TRACES portal for the purpose of filing of tax return and for other tax
compliance purposes.

Annual Information Statement (AIS) includes information presently available

with Income Tax Department. There may be other transactions relating to the
taxpayer which are not presently displayed in Annual Information Statement
(AIS). Taxpayer is expected to check all related information and report complete
and accurate information in the Income Tax Return.

26. Important Steps for Filing Income Tax Returns

Last date for Filing IT return for FY 2021-22 -31st July 2022
It will be easy to file online return in e filing portal of Income Tax Department. Keep
your Aadhaar Number, Bank account details (like IFS code and account Number)
ready.

i) Before filing IT return ensure the following facts and figures are correct
a. Annual Salary/Pension income is what is given in part B of F 16, or as in
Pension Statement or the actual gross credit received.
b. TDS effected is reflected in 26 AS and it is reconciled. One can file return
with out Forms 16 A and 16(Part A) as the details are available in 26 AS.
(But they have to ensure that they include total interest received /accrued
from various sources. In such cases it is better to have Interest certificate
from Banks that includes all interest received without omission.)
c. Total other income has to be more than what is given in form 26 AS. As
26 AS reflects only the term deposit interests. One can find entries for
Deposit Interest Credits in 26 AS, even when TDS is not deducted (due
to submission of 15G/15H).
d. In 26 AS, SB interest, Bond Interest, Interest on Income Tax refund
Order would not be there. But it has to be included in other income. ITR
I has been modified to have detailed break up for other income like Int
on deposits, SB interest, Other Interest, Interest on Income Tax Refund
Order etc.
e. 26 AS focus more on TDS/TCS effected and AIS focus on all financial
transactions of the tax payer. AIS includes SB interest on Deposits,

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 14
 Dividends from Shares, MFS, Other income, Specified financial
transactions (foreign travel, purchases/Sale of shares, Opening of l
Deposits, Purchases/Sale of property/Vehicle etc.)
IT returns are pre filled based on information available in 26AS/AIS.
f. If there is variation between the TDS/TCS information as displayed in
Form 26AS on TRACES portal, and the TDS/TCS information as
displayed in AIS on Compliance Portal, the taxpayer may rely on the
information displayed on TRACES portal for the purpose of filing of tax
return and for other tax compliance purposes.

g. It is advisable to verify figures given in AIS (annual information

Statement) and TIS (Tax information Summary) to ensure that all
financial transactions reported there in are properly accounted for in the
return. If there is discrepancy or wrong entry, it has to be taken up online
under feed back section for rectification. This is important as AIS is
maintained by compliance wing of IT department and the returns will be
scrutinized based on AIS information, future queries can be avoided.
h. Before filing IT returns, one should include Other Income, avail all eligible
deductions and arrive at Tax Liability.
i. After ensuring that all TDS effected and Tax paid as advance Tax, Self-
assessment Tax are correctly reflected in 26 AS, one can proceed filing
Income Tax return. If any missing credit is found, the matter should be
taken up with the diductor immediately for rectification.
j. Prevalidation of Bank Accounts for getting IT refunds:
Any excess payment of tax can be claimed while filing IT return. For
getting Income Tax refund credit, ensure that your Bank account is
prevalidated by log in to incometaxindiaefiling.gov.in>Profile
Settings>Prevalidate your Bank account.
k. For Getting Income Tax refund, prevalidating of Bank account is
mandatory. Before opting for prevalidation, ensure that your Bank
account is Aadhaar linked.
ii) Log in to e filing Portal of Income Tax department –Select option -e Filing of
Income Tax Returns on line.
iii) Option is provided for choosing the Tax regime. Individual should select the
appropriate tax regime and should proceed further.
iv) Verify the particulars like Aadhaar number, address etc., already captured
from the previous year data and shown in the return. Use Save draft option
frequently. Fill in the data regarding income, Fill in eligible deduction –
Standard Deductions of Rs 50,000/-( not applicable for family pension) and
Professional Tax paid if any under Sec 16.
v) Details on Income from House Property to be provided in B2, Income from
Other Sources in B3.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 15
 vi) Family pension income comes under B3-Income from Other sources. For
family pension a deduction of Rs 15,000/- or 33.33% of Family Pension,
whichever is lesser, is eligible under Sec 57(iia) of IT Act.
vii) Details for Other income, with break up- Interest on Deposits, SB Interest,
Interest Income from Bonds, Income Tax Refund Order Interest etc. are to
be provided in the respective sub heads.
viii) In part C deductions on account of 80 C, 80 D etc. are to be given. Senior
Citizens can avail deduction on Interest on Bank Deposits, including SB
interest up to a maximum limit of Rs 50,000/- under Sec 80 TTB. Senior
Citizens not eligible for deduction under Sec 80 TTA. Sec 80 TTA is meant
for individuals other than Senior Citizen, up to a maximum of Rs 10,000/-
towards SB interest alone. (Term Deposit interest excluded).
ix) Part D – Computation of Income Tax will be done by the system based on
the inputs given and figures furnished/matched with 26 AS.
x) Tax deducted /Paid details would be shown in TDS 1, 2 and in Schedules
of Advance Tax/Self-Assessment Tax paid based on figures available in 26
AS.
xi) After completion, preview and submit the return. In case in preview, some
modification needs to be done, edit option can be used.
xii) After submission, Acknowledgement V can be e verified with the options
given. It can be done either based on Aadhaar OTP, or through Internet
Banking.
xiii) After successful e verification, this can be viewed under option View Return
and Forms> Income Tax Returns. Down load ITR I and ITR V and save it in
a folder. After the Assessment is over (this may take few weeks/months) the
status would be changed to Assessed for the relevant year.

Vijayaraghavan r

Disclaimer: The contents in this write up are meant for information purposes only and
do not purport to be a legal document. The author does not warrant the accuracy or
completeness of the information. This has been provided to serve as a reference guide
for information only. Readers are requested to refer the Income Tax Act, and relevant
Notifications and guidelines of the Government /Income Tax Department for a detailed
view and to act upon

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 16
Part C

Income Tax Slabs FY 2021-22 & FY 2022-23-Old Regime

Senior Citizens 60 Years and above- Very Senior Citizens 80 Years and
Below 80 Years-Annual income-Rs above-Annual income-Rs
Up to 3,00,000 Nil
3,00,001-5,00,000 5% Up To 5,00,000 Nil
5,00,001- 10,000+20% 5,00,001- 20%
10,00,000 10,00,000
Above 10 lakhs 1,10,000+30% Above 10 lakhs 1,00,000+30%
Health/Education Cess-4% of Income Tax.

Surcharge-If the income exceeds Rs 50 lakhs as applicable

Income Tax Slabs FY 2021-22 & FY 2022-23-New Regime

Income Tax Bracket-Rs Tax Rate (%) in Rs

Up to 2,50,000 Nil
5 Lakhs - 7.5 Lakhs 12,500+10%
7.5 Lakhs - 10 Lakhs 37,500+15%
10 Lakhs - 12.5 Lakhs 75,000+20%
12.5 Lakhs - 15 Lakhs 1,25,000+25%
More than 15 Lakhs 1,87,500+30%

There is no change in Cess and Surcharge.

Standard Deduction, Housing Loan Interest, Sec 80 C,80 D, 80 TTA, 80 TTB (Bank
Interest exemption for Sr Citizens) are not available in new regime
Rebate under Sec 87A is available in New Tax regime. That is for Taxable income
below Rs 5 Lakh-income tax liability would be Nil in new Tax regime too.

The Tax structure is uniform for all categories in New Tax regime and there is no
concession in exemption limit for Senior Citizens and Very Senior Citizens.

How to decide which Tax regime is better and suitable for me?

I have developed an Income Tax Calculator for FY 2021-22, FY 2022-23 for Salary
class individuals and Pensioners. The same is available in my website Viju
https://bankonviju.in/

By simply feeding the total Annual Income and Total deductions and age group, one
can get the total tax liability in both regimes and cross check it with excel output. One
can also view which regime is better for various values for the selected age group.

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 17
Step 1 - Arrive at Estimated Total annual income. (Salary/Pension+ Other Income)
Step 2 - Arrive at the Total Estimated total deductions-
a. HRA, Housing Loan interest if any, Professional Tax
b. Standard Deductions
c. Bank Interest –Sec 80 TTB for Sr citizens, SB Interest for others –Sec 80 TTA
d. Deductions under Sec 80 C, 80 D already committed or existing
e. Proposed Investment Under Sec 80 C (Max Limit Rs150,000), 80 D (Self and
Spouse-Sr Citizens Max Rs50,000, Others-Max Rs25,000(In both cases where
parents are involved it can go up to Rs100000/50,000)
f. Sec 87 A one can exclude from deductions. It is available in both regimes. New
retirees can exclude DCRG, Commuted Value and exempted Leave encashment
while arriving at estimated income.
Click on the following link.
https://bankonviju.in/apps/it-regime

Key in the estimated total income, Deductions and age group. One will get the instant
result.
Tax liability can be arrived at for both New as well old regime for the individual income
and one can decide instantly which regime suits him better.
The link would be useful to cross verify IT calculations and arrive at exact Tax Liability
in both regimes.
My inference: For those who are in the lower tax bracket, with small savings if they
can bring the Net Income below Rs 500,000/- old regime is preferable. For those in
30% tax slab in the old regime and those who don’t want to save for Tax, new regime
may be preferable. For Senior Citizens, with Standard Deductions and Sec 87 A, 80
C, 80 D, 80 TTB concessions. if a person brings the Net Income below Rs 5 Lakh old
Regime is beneficial.
In some cases, for those in 30% tax slab in the old regime and those who don’t want
to save for Tax, new regime may be preferable.
Those who are interested to have the simple calculator in Excel format (a ready
reckoner displaying Tax liability in both regimes with single input) can send mail to
rvnotes127@gmail.com
Vijayaraghavan R
Disclaimer: The IT Calculator has been prepared on best efforts basis and provided
as a free service to help in arriving at income tax liability of the individuals. Users are
requested to cross verify and follow the Income Tax act latest guidelines on this

A Guide on Income Tax for Senior Citizens-Benefits and FAQs by Vijayaraghavan r dt 05.06.22 18