INCOME TAX – POINTS TO PONDER

10.07.2022
Members are aware that it is mandatory to submit the Income Tax return, for those whose income is more
than Rs.2.5 Lakhs (Rs.3 Lakhs for senior citizens of 60 years and above and Rs 5 lakhs for super senior
citizens of 80 years and above) through online. Details of forms to be submitted are furnished below. Last
date for submission of Income tax return by Individual is 31st July and penalty will be charged for late
submission. Please note that the revised return can be submitted only when you are submitting the original
return before 31st July. Any amount received by way of Salary, pension, rent, interest, dividend,
honorarium, medical aid etc. are to be treated as Income of the individuals

ITR 1: This Return Form is to be used by an individual who is a resident other than not ordinarily resident,
whose total income for the year does not exceed Rs. 50 lakh and who has income under the following
heads (ITR 1 is not applicable for an individual who is either Director in a company or has invested in
Unlisted equity shares).
➢ Income from Salary/ Pension
➢ Income from One House Property
➢ Income from Other Source and
➢ Agricultural income up to Rs.5 thousand

ITR 2: Individuals (who are not having income from profits and gains of business or profession)
✓ Those who are having two or more house properties
✓ Whose annual income is more than 50 Lakhs,
✓ Individual who is either Director in a company or has invested in Unlisted equity shares
✓ Capital gain, Agricultural Income more than Rs.5000, NRE, etc.

ITR 3: This form can be used in the following cases:

Carrying on a business or profession
If you are an Individual Director in a company
If you have had investments in unlisted equity shares at any time during the financial year
Return may include income from House property, Salary/Pension, and Income from other sources
Income of a person as a partner in the firm.

Please note that pension is treated as salary and pensioners are also eligible for standard deduction (under
section 16(ia) of Rs.50000/- like other salaried class employees. But family pension is not treated as salary
and it should be treated as other source of income and for family pension, a standard deduction under
section 57 (II A) is available under which an amount of Rs.15000 or 1/3 of the uncommuted pension
received, whichever is less, shall be exempted.

Please ensure that total salary/pension, Interest received from deposits (Savings Bank, Term Deposits),
Interest for Income Tax refund etc. are equal or more than that of the amount mentioned in Form 26 AS
and the income tax deducted from salary/pension/interest are reflected in form 26 AS. Interest received
from Savings Bank account and Term Deposit accounts, Family Pension, IT Refund etc. to be shown in
respective heads, in other sources of Income.
Deductions: Eligible deductions and other details.

❖ 80 C: PF, Tax saver deposits, SCSS, Life Insurance Premium, NSC, etc. (maximum Rs.150000)
❖ 80 D: Medical Insurance Premium, Health checkup (maximum 5000), etc. (Overall maximum
Rs.50000)
❖ 80 E: Education Loan Interest
❖ 80 G: Donation to PM Cares/CM Relief Fund – 100%; Others – 50%
❖ 80 TTA: Actual Savings Bank interest (maximum Rs.10000 for non-senior citizens)
❖ 80 TTB: Actual SB/Fixed deposit interest (maximum Rs.50000 for senior citizens)

Rebate: 87 A: Taxable income up to Rs.5 lakhs (maximum rebate of Rs.12500)

Allowances exempted under Section 10

Those who have received commutation amount, PL encashment on retirement, Gratuity etc. are advised to
declare such income in their ITR and to deduct the same as exempted allowances.

10(10): Death-cum-retirement Gratuity (maximum Rs.20 Lakhs)

10(10A): Commuted value of Pension
10(10AA): Leave Encashment (maximum Rs.3 Lakhs)

Income Tax Slab: Income tax slab as per Old Scheme and New Scheme (Section 115BAC of Finance Act
2020). While filing return, the assessee, can opt for the new scheme with lower rate and no deductions
(such as standard deductions, deductions under 80 C, 80 D etc.) are allowed. If not opted, old rate will
apply, and eligible exemptions can be claimed. Health and Education Cess 4% in both the cases.

Old Scheme New Scheme

Slab Tax % Slab Tax %
250001-500000 5 250001-500000 5
500001-1000000 20 500001-750000 10
Above 1000000 30 750001-1000000 15
1000001-1250000 20
1250001-1500000 25
Above 1500000 30
Deductions are allowed About 70 deductions are not allowed

194P of Income tax Act: Every individual with income above the basic exemption limit as contemplated by
the Act, must file an income tax return under Section 139 of the Income Tax Act. In the Finance Budget
which pertains to the year of 2021, a new section namely, the Section 194P was introduced to provide a
conditional relief to the senior citizens over the age of 75 years. However, in order to reduce the
compliance burden of filing returns, the Union Budget 2021 exempted senior individuals over 75 years of
age from filing income tax returns, subject to certain conditions.
The conditions which should be met with for being able to take the advantage of exemption provided by
Section 194P would be as follows:

➢ Senior citizens must be 75 years old or older than that.

➢ Senior persons must have lived in India during the previous year and should be a ‘Resident’.
➢ He solely has interest and pension income. And the interest income which is earned or accumulated or
received should be from the same bank where he is receiving the pension income.
➢ To the designated and specified bank, the senior person will or should have to submit a declaration.
➢ According to the Central Government, the bank is a “specified bank.” After considering the deductions
under Chapter VI-A and the rebate under 87A, such banks will be accountable for the TDS deduction of
senior persons.
➢ There will be no necessity for senior individuals over 75 years of age to file an income tax return once
the specified bank, as described above, deducts tax in the form of TDS.

Navigation:

Form 16: URL: Indianbank.in → bottom 3rd column, third row--> IB retirees’ portal. Enter SR No, OTP will
come to the registered mobile number. HR connect screen will display - enter password --> Form 16
details. You can view and download form 16. Same can be obtained from any branch through HR connect
→ Managerial Service – Form 16 details. Manager Service menu is available only BM/ABM.

Form 26 AS: Form 26 AS can be generated by two ways, one through net banking and another through
income tax site.
Enter net banking → Govt/Tax payments →Form 26 AS.
Income tax site → e-file → Income Tax return →choose “view form 26 AS”
Enter assessment year. Press “view” button. Press “+” button, individual entries will be displayed.
Download Form 26 AS.

E-Filing: E-filing site can be accessed in two ways. One through the income tax site and another through
net banking.
1) Income tax site – URL: incometaxindiaefiling.gov.in → Enter PAN number and password
2) Net banking → Govt/Tax payments → e-filing →Choose account number

e-file → Income tax return → File Income Tax return → Assessment year → choose ITR form ….
Continue. All schedules to be confirmed. Please note that Income Tax return can be submitted only when
the amount due is NIL Ensure Validation is successful and if any error shows it must be rectified.
Verification to be done by any one of the methods viz. a) Aadhaar b) net banking etc.

Please feel free to contact for further clarifications.

R.Balasubramanian
Joint Secretary FIBRE 9443067905
 10/07/2022

Sub: Senior Citizen Savings Scheme (SCSS)

Senior Citizens Savings Scheme (SCSS) salient features are given below for usage of our members.

a) It is a government-backed savings instrument offered to Indian residents aged over 60 years.

b) Individuals who have attained the age of 55 years old, but are below the age of 60 years old and
have retired on VRS/superannuation are eligible
c) Spouse of the depositor, though not a senior citizen, may join as a joint depositor and in that case,
account will be opened on F or S basis.
d) The deposit matures after 5 years from the date of account opening but can be extended once by
an additional 3 years.
e) The SCSS interest rate as of July 2022 is 7.4%
f) Maximum investment - Rs.15 lakhs
g) Investments in SCSS are eligible for tax deduction under Section 80C of IT Act.
h) Interest is paid on quarterly basis and interest earned is fully taxable
i) It can be opened in Banks and the Post Office.
j) Account can be transferred from One bank to another
k) Pre closure after 1 year allowed with penalty.
l) On death of a depositor, the deposit can be closed without penalty.

In our bank, SCSS accounts can be opened through all branches in the CBS system from 16/10/2019.
System itself will calculate interest for every quarter.