Relief To Senior Citizens: CBDT Clarifies No TDS If Annual Income Is Less Than Rs 50,000

The Central Board of Direct Taxes (CBDT) has clarified that in case of senior citizens, tax should not be deducted at the source under section 194A of the Income Tax Act when annual income does not exceed Rs 50,000, Financial Express has reported.

“The same is not in accordance with the law as the Income-Tax Act provides that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed Rs 50,000,” said one of the CBDT circular.

The CBDT had received information that bank are deducting tax at the source for senior citizen with income less than Rs 50,000 per annum. Sub-rule (5) of Rule 31A of the income tax Rules, 1962 authorises the Director General of Income-tax (Systems) to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claims for refund.