Correct option is D
The correct answer is (d) Section 194P.
Explanation:
Section 194P of the Income Tax Act, 1961, was introduced in Budget 2021 and implemented from April 1, 2021. This section provides relief to senior citizens aged 75 years and above by exempting them from filing income tax returns (ITR) if they meet specific conditions. Under this provision, a senior citizen with only pension and interest income (from the same bank) is not required to file an ITR, as the bank deducts the required tax at source (TDS).
Information Booster:
- Section 194P applies to senior citizens aged 75 years and above.
- The exemption is available only if income comes from pension and interest from the same bank.
- The bank deducts the applicable tax (TDS) in advance, eliminating the need for ITR filing.
- This section aims to reduce the compliance burden for elderly taxpayers.
- The provision applies to specified banks notified by the government.
- It was introduced as part of the Finance Act 2021 to simplify taxation for super senior citizens.
Additional Information:
- Section 139A: Deals with Permanent Account Number (PAN) requirements.
- Section 234C: Imposes interest on delay in advance tax payment.
- Section 80C: Allows tax deductions on investments (PPF, LIC, EPF, NSC, etc.).
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