Relaxation of Filing Tax Return for Senior Citizens

Under Section 194P which is applicable from 1 April 2021, citizens are exempted from filing income tax returns provided they meet the following conditions -

1. Should be above 75 years of age

2. Should be a Resident Indian in previous financial year

3. Should be having income only from Pension and interest which is earned from a specified bank

4. Should have furnished a declaration to the specified bank

5. Specified bank means a bank notified by the Central Government for receipt of pension.

Role of employee
If an employee wants to avail of exemption from filing income tax return under this section he/she will have to furnish a declaration to the bank.
Role of employer
Employer has to ensure that
1. The pension is being paid to the specified bank account
2. Provide the required details in the 24Q for Quarter 4

Steps to be followed in the software
1. Payroll Managers will need to update the declaration on behalf of the employee in EazeWork HRMS - refer section 6 of the article on Employee Payroll Details management
2. When 24Q is being generated the details declared under section 194P will be automatically picked up