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Finance Bill 2012-13 has really good news for senior citizen. First the age anomaly was corrected by reducing the age from 65 years to 60 years for section 80D , 80DDB and section 197A and then an amendment in section 207 of the Income Tax Act now provides that if the senior citizen has no income from business or profession, he need not pay advance tax. He should pay the tax by self assessment tax only.

Benefits to Senior Citizen on advance tax

This will not only create some less hassle for senior citizens , it will also save money as they will not be charged interest u/s 234B & 234C which is applicable only when a fixed percentage of the advance tax liability is not paid by a tax payer.Thus , Finance Bill 2012-13 has certainly good things for senior citizen

The amended provision u/s 207 of the Income Tax Shall be as under ( Mark the inserted provision in purple colour)

207. (1)Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the budgetSeniorCitizentotal income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as “current income

(2) “(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—
(a) does not have any income chargeable under the head “Profits and gains of business or
profession”; and
(b) is of the age of sixty years or more at any time during the previous year”

Senior citizen now can have some less problem with Income Tax  !

About Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

4 Responses to “Senior Citizen : No Advance Tax if No Business Income”

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  1. Invest in Section 54EC Bonds up To Capital Gains to Get Exemption !

    […] attached if the gains arises in FY 2012-13. That is the senior citizen will not have to pay the advance tax on such gains , even if the same is earned in the month of April 2012 . Please read the amendment […]

Print Friendly

Finance Bill 2012-13 has really good news for senior citizen. First the age anomaly was corrected by reducing the age from 65 years to 60 years for section 80D , 80DDB and section 197A and then an amendment in section 207 of the Income Tax Act now provides that if the senior citizen has no income from business or profession, he need not pay advance tax. He should pay the tax by self assessment tax only.

Benefits to Senior Citizen on advance tax

This will not only create some less hassle for senior citizens , it will also save money as they will not be charged interest u/s 234B & 234C which is applicable only when a fixed percentage of the advance tax liability is not paid by a tax payer.Thus , Finance Bill 2012-13 has certainly good things for senior citizen

The amended provision u/s 207 of the Income Tax Shall be as under ( Mark the inserted provision in purple colour)

207. (1)Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the budgetSeniorCitizentotal income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as “current income

(2) “(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—
(a) does not have any income chargeable under the head “Profits and gains of business or
profession”; and
(b) is of the age of sixty years or more at any time during the previous year”

Senior citizen now can have some less problem with Income Tax  !

About Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

4 Responses to “Senior Citizen : No Advance Tax if No Business Income”

Leave a Reply

You must be logged in to post a comment.

Trackbacks and Pingbacks:

  1. Invest in Section 54EC Bonds up To Capital Gains to Get Exemption !

    […] attached if the gains arises in FY 2012-13. That is the senior citizen will not have to pay the advance tax on such gains , even if the same is earned in the month of April 2012 . Please read the amendment […]