CBDT notifies ‘specified bank’ for the purpose of TDS u/s 194P in case of specified senior citizen
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 4 September, 2021
Latest from Taxmann
Notification No. 98/2021, dated 02-09-2021
To provide relief to the senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Bill, 2021, has inserted Section 194P. This provision requires the specified bank to deduct tax under this provision if the deductee is maintaining an account with it in which he is receiving his pension income.
The tax is required to be deducted 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 such specified bank; and
(b) Deductee has furnished a declaration to deductor containing prescribed particulars.
If the above conditions are satisfied, the specified bank shall compute the income of the 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 a senior citizen, he shall not be liable to furnish the return of income for the previous year in which tax has been deducted.
Now, the Central Board of Direct Taxes (CBDT) has notified specified Bank to mean a banking company which is a scheduled bank and has been appointed as agents of Reserve Bank of India under section 45 of the Reserve Bank of India Act, 1934.
Click Here to Read Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
