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 total 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
(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 !