Proposed in 2023-24, which section of the Income Tax Act of 1961 exempts senior citizens aged 75 years and above from filing income tax returns?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Section 194P.
In the Union Budget 2023-24, the Government of India proposed an exemption under Section 194P of the Income Tax Act, 1961, allowing senior citizens aged 75 years and above to not file income tax returns if their income is derived solely from pension and interest on deposits. This measure aims to simplify tax compliance for elderly taxpayers and reduce the burden of filing returns when their income sources are limited and predictable.
Other options:
-
Section 139A: Deals with PAN card allotment.
-
Section 234C: Pertains to advance tax payment defaults.
-
Section 80C: Provides deductions for specified investments, not filing exemptions.