Section 194P : Deduction of Tax in case of specified senior citizen. - Income Tax - Ready Reckoner - Income Tax

Section 194P : Deduction of Tax in case of specified senior citizen. The provisions of section 194P inserted with effect from 01.04.2021. Tax to be deducted by the specified bank shall, a compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force. by specified bank on the total income of specified senior citizen for the relevant A.Y. computed after giving effect to- Deduction allowable under Chapter VI-A and Rebate allowable under section 87A . No return of income is required to file u/s 139 if tax is deducted under this section 194P . Where the deductee does not exercise the option to shift out of the default tax regime u/s 115BAC In such case, the specified bank shall deduct tax at source in accordance with the rates provided u/s 115BAC(1A) subject to certain conditions, including the condition that the specified senior citizen does not avail of specified exemptions and deductions. Meaning of certain term for the purposes of this section (a) specified bank means a banking company as the Central Government may, by notification in Official Gazette, specify; (b) specified senior citizen means an individual, being a resident in India (i) who is of the age of 75 years or more at any time during the previous year; (ii) who is having income of the nature of pension and no other income except the income of the nature of interest received or receivable from any account maintained by such individual in the same specified bank in which he is receiving his pension income; and (iii) has furnished a declaration to the specified bank containing such particulars, in such form and verified in such manner, as may be prescribed. Prescribed from and manner for furnishing declaration with the bank [ Rule 26D ] Form No. and manner of furnishing the form The declaration required to be furnished by the specified senior citizen to the specified bank under sub-clause (iii) of clause (b) of explanation to section 194P shall be in Form no. 12BBA to be furnished in paper form duly verified. [ Sub Rule (1) ] Specified bank deduct tax at source considering the declaration furnished On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force. [ Sub Rule (2) ] The effect to the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year. [ Sub Rule (3) ] Specified bank responsible for keeping and maintaining declaration and evidence furnished by the senior citizen The declaration referred to in rule 26D(1) and evidence for claiming deduction under Chapter VI-A referred to in rule 26D(3) shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required. [ Sub Rule (4) ] The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedure for furnishing of particulars of Form No. 12BBA referred to in rule 26D(1) and evidence referred to in rule 26D(3) by the specified banks to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required. [ Sub Rule (5) ]