Income Tax: Form 12BBA Will Save You from Trouble—Here’s What You Need to Know

ITR Filing Season Begins: Relief for Senior Citizens Explained

As the financial year kicks off, taxpayers across India are gearing up to file their Income Tax Returns (ITR). But while most citizens must adhere to annual tax-filing obligations, there are certain exemptions—particularly for senior citizens. Thanks to Form 12BBA, some elderly individuals may not need to file an ITR at all.

Who Is Exempt from Filing ITR?

According to the Income Tax Department, every individual with taxable income must file an ITR, unless exempted by specific provisions. However, senior citizens aged 75 years or above may be spared this process under defined conditions.

The key criteria for exemption include:

• The individual must be a resident senior citizen aged 75 or above.

• Their income should consist solely of pension and interest from a bank account.

• Both sources of income must be received from the same bank.

This exemption, introduced under Section 194P of the Income Tax Act, is aimed at easing compliance burdens for elderly taxpayers.

Form 12BBA: A Gateway to Tax Relief

For eligible senior citizens to benefit from this exemption, submission of Form 12BBA is essential. This form must be furnished to the bank from which the pension and interest income is received. By submitting this form, the bank takes on the responsibility of deducting the applicable tax at source (TDS), eliminating the need for the individual to file an ITR separately.

Form 12BBA includes declarations confirming:

• The taxpayer’s age and residency.

• That their total income is limited to pension and bank interest.

• No other income sources exist for the financial year.

Timely Submission Is Crucial

Failure to submit Form 12BBA may lead to complications, including the necessity to file an ITR manually or face legal repercussions. While the form provides significant relief, it must be submitted at the beginning of the financial year to the designated bank.

It’s crucial for senior citizens and their families to ensure all documentation is in order to avoid any legal or financial inconveniences. Staying informed and proactive is the best way to navigate the complexities of income tax compliance.