👉The Central Board of Direct Taxes (CBDT) notified the provision regarding Furnishing of declaration and evidence of claims by senior citizens for Exemption from Income Tax Return Filing under section 194P of the Income Tax Act. 👉The CBDT inserted Rule 26D through the Income-tax (26th Amendment) Rules, 2021. 👉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. 👉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. 👉The effect of the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year. 👉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. 👉The Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems), as the case may be, shall specify the 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.”. 👉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. 👉In the principal rules, in rule 31A,- (i) 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; 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; after sub-rule (3A), the following sub-rule shall be inserted, namely:- 👉“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 authorized by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required,” the notification said. 👉The Board notified Form no. 12BBA which pertains to a declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P. Team – Intellex Strategic Consulting Pvt Ltd Economiclawpractice.com, Intellexconsulting.com, Yuvamorcha.com, Janakerala.com, Startupstreets.com

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