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

Media organisation and social media users claimed that Finance Minister Nirmala Sitharaman has announced exemption of income tax to senior citizens above 75 years of age in Budget 2021. The Logical Indian Fact-Check team debunks the claim.

India   |   2 Feb 2021 2:25 PM GMT
Editor : Bharat Nayak | Creatives : Abhishek M
Fact Check: No, Senior Citizens Above 75 Years Of Age Are Not Exempted From Paying Income Tax

Image Credit: Swarajya

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.

75 साल से ज़्यादा उम्र के पेंशनधारियों को अब न तो आयकर देना होगा और न ही आयकर रिटर्न भरना होगा। वित्तमंत्री निर्मला सीतारामन ने आज बजट में इस राहत का ऐलान किया।

Posted by Amitaabh Srivastava on Sunday, 31 January 2021

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."

If you have any news that you believe needs to be fact-checked, please email us at factcheck@thelogicalindian.com or WhatsApp at 6364000343.

Also Read: Video Of Policeman Sloganeering 'Jai Jawan, Jai Kisan' Viral With Claim Of 200 Delhi Cops Resigning In Support Of Farmers' Protest

Claim Review :  The government has announced no income tax for senior citizens above 75 years of age.
Claimed By :  Social Media
Fact Check :  False
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Contributors

Yusha Rahman

Yusha Rahman

Fact-Checker

Yusha, an engineer turned journalist with a core interest in sensible journalism. Since the time she worked in an MNC, she saw how fake news was rife to malign images of communities, leaders, etc. This encouraged her to give up her career in MNC and passionately work towards curbing fake news and propaganda.

Bharat Nayak

Bharat Nayak

Founding Editor - Special Project

As the founding editor, Bharat had been heading the newsroom during the formation years of the organization and worked towards editorial policies, conceptualizing and designing campaign strategies and collaborations. He believes that through the use of digital media, one could engage the millennial's in rational conversations about pertinent social issues, provoking them to think and bring a behavioral change accordingly.

Abhishek M

Abhishek M

Creative Supervisor

" An engineer by profession, Abhishek is the creative producer of the team, graphic designing is his passion and travelling his get away. In more ways than one, he makes the content visually appealing."

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