No advance tax for senior citizens

Yes, it is correct, if you are senior citizen and you donot have any kind of buisiness income, you are exempted payment of advance tax. You can pay tax while filing return if any tax is due at the time of filing.

Nagaraj N Nyamati

Advocate

Yes, it is correct, if you are senior citizen and you donot have any kind of buisiness income, you are exempted payment of advance tax. You can pay tax while filing return if any tax is due at the time of filing.

Nagaraj N Nyamati

Advocate

Finance Act 2012 has provided releif to Senior Citizens by exempting them from payment of advance tax, provided they are not having any income chargeable under the head "Business or PRofession". Though it is a welcome step, but would be useful is yet to be tested.  A senior citizen normally earns from pension and or interest income and TDS on both the income is deductible at source.  Where most of the Senior Citizens are in the tax braket of 10%, there remains very little to be paid discharge their liability.

Thank you so much. I thought there was no comment on this message.

However the banks are not accepting this and insist on deducting TDS.  Since this is correct (and I had later crosschecked on IT website), banks should not deduct TDS for senior citizens.

I find banks are very slow in passing down IT changes to their staff. And the staff do not implement IT rules unless they get a circular from HO.

For eg. in ICICI bank they insist that the rule reducong the age for senior citizens from 65 to 60 is effective only from July 2012. However the IT ruling came into effect from April 2011. I saw it in last years budget.