Section 194P
Finance Act, 2021 has bought in a new section called 194P in order to provide relief to the Senior Citizens by way of waiving the requirement for filing Return of Income under section 139(1), if the following conditions are satisfied:
- Senior Citizens means a person above 75 years at any time during the Previous year.
- Is Resident of India.
- Only source of Income should be pension and interest income and Interest Income should be received/accrued in the same specified bank in which pension is received.
- The senior citizen should submit a declaration which will contain details for Incomes earned, Deductions u/s. 80C to 80U.
If the above conditions are satisfied, the Specified Bank will compute the Total Income and Total Tax payable by the Senior Citizen and Deduct TDS u/s. 194P.
Deduction under this section waives off the liability to file Return of Income u/s. 139(1) of the act.
Compliance check for 206AB and 206CCA
Finance Act, 2021 in order to punish non filers of Income tax returns, brought in 2 sections 206AB and 206CCA which requires deductor/collector to deduct/collect higher rate of Tax on Specified persons.
Both the sections introduced are directly punishing the non filers of Income tax returns but they increased the compliance burden on the person responsible for deducting/collecting TDS/TCS too.
In order to reduce the compliance burden on deductor/collector, Income tax department has bought in a new functionality to facilitate deductors/collector to verify whether a person is a Specified person or not as per Section 206AB and 206CCA.
Steps to be followed to verify Specified persons:
- Deductor/Collector has to register himself in https://report.insight.gov.in.
- Once the Deductor/Collector is logged in, he can verify whether a person is specified person or not in ways which is as follows:
- Single PAN at a time,
- Bulk PAN at a time(10,000 at a time)
- He will be having an option to download the above results in PDF too.
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