Tax Exemption Claims for Senior Citizens Over 75 Years of Age – True or False?

A message has been widely shared on social media stating that senior citizens above 75 years of age do not have to pay income tax. It attributes this change to a government decision following India’s 75th year of independence.

This claim, however, is completely false.

What Does the Law Actually Say?

According to a post by the PIB Fact Check handle on X, under Section 194P of the Income Tax Act, senior citizens aged 75 or above who meet specific criteria are exempt from filing an income tax return (ITR). This does not mean they are exempt from paying taxes.

To qualify for this exemption from filing ITR, the following conditions must be fulfilled:

• The individual must be a resident Indian senior citizen aged 75 or above.
  
• They must have only pension income and interest income (earned from the same bank where they receive the pension).
  
• The specified bank will compute its total income and deduct applicable tax after allowing deductions (like under Section 80C).

Role of the Specified Bank

The exemption hinges on the bank being classified as a “specified bank” by the government. These banks are authorised to:

• Compute the taxable income of such senior citizens
  
• Deduct TDS (Tax Deducted at Source)
  
• Ensure tax compliance without requiring the citizen to file an ITR

To benefit from this provision, eligible individuals must submit Form 12BBA to the bank with a declaration and proof of deductions.

PIB Fact Check: The Message Is Fake

The Press Information Bureau (PIB) Fact Check team has officially debunked the viral message. They clarified that there is no blanket exemption from paying taxes for citizens above 75. The exemption is only from filing returns and only for those who meet strict criteria.

Conclusion 

Being exempt from filing an ITR is not the same as being exempt from paying taxes. If income tax is applicable, it will still be deducted by the authorised bank even if an ITR is not filed.

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