Fact Check: No, Senior Citizens Above 75 Years Of Age Are Not Exempted From Paying Income Tax

Finance Minister Nirmala Sitharaman announced the Budget for fiscal year 2021-21 on February 1, 2021. After the announcement, many social media users are claiming that people above the age of 75 years have been exempted from paying income tax.

Amitaabh Srivastava, the Former Executive editor at TV Today Network Ltd., posted, "Pensioners above 75 years of age will now neither have to pay income tax nor file income tax returns. Finance Minister Nirmala Sitaraman announced this relief in the Budget today." The archive of the post can be seen here.

Similarly, many social media users and media organisations also claimed that the government has exempted income tax for those above 75 years of age.

Archive of the post can be seen here.

Archive of the post can be seen here.

Claim:

The government has exempted senior citizens above 75 years of age from paying income tax.

Fact Check:

The Logical Indian searched on with the keyword, "Income Tax for 75 years" and found an article published by LiveMint on February 1, 2021. According to the article, senior citizens above 75 years of age shall be exempted from filing income tax returns (ITR), but they will have to pay income tax at their respective tax slabs. The article says, "To ease the compliance burden on senior citizens who have been hit hard by the covid-19 crisis, finance minister Nirmala Sitharaman on Monday exempted individuals above 75 years from filing income tax returns (ITR). However, such individuals will have to continue to pay income tax at their respective tax slabs. The paying bank will deduct the necessary tax."

Nirmala Sithraman, in her Budget speech, announced that citizens above 75 years of age are to be exempted from filing Income Tax Returns. She said, "Now in the 75th year of Independence of our country when we continue our endeavour with renewed vigour, we shall reduce the compliance burden on our senior citizens who are 75 years of age and above. For senior citizens who only have pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income." Her statement during Budget presentation can also be read in the document of Budget 2021-22.

The Logical Indian also contacted Archit Gupta, Founder and CEO of ClearTax, who said, "Senior citizens above the age of 75 are not exempted from taxes. Senior citizens who earn a pension income and interest income are likely to face TDS at the time of payment. TDS is just tax which is deducted at source. So long as these incomes are the only 2 incomes earned by a senior citizen, and these are received at the same bank, assuming that this bank takes care of all TDS requirements, such senior citizens will not have to file an ITR. However, if they face TDS on the interest income from another bank (other than the specified bank where the pension is received), they will either have to file Form 15H (if total income is below taxable limit) or file an ITR to claim a refund of taxes (if required) or report total income earned by filing an ITR."

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