New IT Rule 26D: Furnishing Declaration/ Evidence of Claims by Senior Citizens (Form 12BBA) u/s 194P

CBDT notifies the Income-tax (26th Amendment) Rules, 2021 to insert new IT Rule 26D regarding furnishing of declaration and evidence of claims by specified senior citizens in new IT Form 12BBA for TDS u/s 194P to claim ITR Filing Exemption u/s 139, vide Notification 99/2021 dt. 03/09/2021. Also IT Forms No. 16, 24Q, 26QB, 26QC and 26QD have been amended.

It may be noted that the Specified Senior Citizens (Resident Individuals) born on or before 01/04/1947 whose only source of income is interest and pension, which is received from the same bank, can avail the benefit of ITR Filing exemption from FY 2021-22/ AY 2022-23.

CBDT Income Tax Notification 99/2021 dt. 03/09/2021: Income-tax (26th Amendment) Rules, 2021 notified regarding furnishing of declaration and evidence of claims by specified senior citizens (TDS u/s 194P for ITR Filing Exemption)

G.S.R. 612(E).—In exercise of the powers conferred by sections 194P and 206AB read with section 295 of the Income-tax Act, 1961, (43 of 1961) the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. Short title and commencement.-

(1) These rules may be called the Income-tax (26th Amendment) Rules, 2021.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 26C, the following rule shall be inserted, namely:

26D. Furnishing of declaration and evidence of claims by specified senior citizen under section 194P

(1) The declaration required to be furnished by the specified senior citizen to the specified bank under sub-clause (iii) of clause (b) of explanation to section 194P shall be in Form no. 12BBA to be furnished in paper form duly verified.

(2) On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.

(3) The effect to the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year.

(4) The declaration referred to in sub-rule (1) and evidence for claiming deduction under Chapter VI-A referred to in sub-rule (3) shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

(5) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedure for furnishing of particulars of Form No. 12BBA referred to in sub-rule (1) and evidence referred to in sub-rule (3) by the specified banks to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

3. In the principal rules, in rule 31, in sub-rule (1), in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted.

4. In the principal rules, in rule 31A,-

(i) in sub-rule (1),-

(I) in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted;

(II) in clause (b), after the words, figures and letter “section 193 to 196D”, the brackets, words, figures and letter “(other than section 194P)” shall be inserted;

(ii) after sub-rule (3A), the following sub-rule shall be inserted, namely:-

(3B) Specified bank responsible for deduction of tax under section 194P shall furnish evidence produced by the specified senior citizen for claiming deduction under chapter VI-A to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or to any other person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required.

5. In the principal rules, in Appendix II,-

(i) after Form No.12BB, the following Form shall be inserted, namely:-

Form No. 12BBA
(see rule 26D)
Declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P*

(ii) For Form No. 16, the following Form shall be substituted, namely:-

FORM NO. 16
[See rule 31(1)(a)]
PART A
Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source on salary paid to an employee under section 192 or pension/interest income of specified senior citizen under section 194P*

(iii) for Form No. 24Q, the following Form shall be substituted, namely:-

FORM NO. 24Q
[See section 192, 194P and rule 31A]
Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act in respect of salary paid to employee under section 192, or income of specified senior citizen under section 194P, for the quarter ended .. (June/ September/ December/ March) ..(Financial Year)*

(iv) for Form No. 26QB, the following Form shall be substituted, namely:-

Form No.26QB
[See section 194-IA, rule 30 and rule 31A]
Challan –cum – statement of deduction of tax under section 194-IA*

(v) for Form No. 26QC, the following shall be substituted, namely:-

FORM NO. 26QC
[See section 194-IB, rule 30(2B) and (6B) and rule 31A(4B)]
Challan-cum-statement of deduction of tax under section 194-IB*

vi) for Form No. 26QD, the following Form shall be substituted, namely:-

Form No.26QD
[See section 194M, rule 30(2C), rule 30(6C) and rule 31A (4C)]
Challan-cum-statement of deduction of tax under section 194M*

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O. 969 (E), dated the 26/03/1962 and last amended vide notification number G.S.R. 604 (E) dated 31/08/2021.

* Please view/ download above attached pdf file for detailed formats of revised IT Forms.

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CBDT clarifies ‘Specified Bank’ u/s 194P (Senior Citizens TDS: ITR Filing Exemption)

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