The Central Board of Direct Taxes (CBDT) has made a provision for older citizens to provide declarations and evidence of claims for exemption from filing income tax returns under section 194P of the Income Tax Act. The Income-tax (26th Amendment) Rules, 2021, were amended by the CBDT to include Rule 26D.
The declaration required to be made by the designated senior citizen to the specified bank under subclause (iii) of clause (b) of Explanation to section 194P shall be in Form No. 12BBA, which must be made in paper form and fully validated. Following receipt of the declaration in Form No. 12BBA, the specified bank shall compute the total income of such specified senior citizen for the relevant assessment year, after taking into account the deductions allowed under Chapter VI-A and the rebate allowed under section 87A, and deduct income tax on such total income at the current rates.
The effect of the deduction allowed under Chapter VI-A will be determined based on the evidence provided by the senior citizen during the preceding year.
The Specified Bank shall keep the declaration referred to in sub-rule (1) and the evidence for claiming deduction under Chapter VI-A referred to in sub-rule (3) in maintained order and make them available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax as and when required.