QUESTION: Press Release No.402/92/2006- MC (07 of 2011) dated March 14, 2011 heralds another good news for senior citizens (of age 60 and above) in that their returns will not be chosen for scrutiny unless the gross total income before availing incentive reliefs exceeds Rs.10 lakh or there is credible information against them. Your comment.
ANSWER: There is some logic in giving a cushion by way of larger exemption limit for senior citizens.
But does it mean that their return should also be immune from verification for correctness of such return?
But then the limit of gross total income at Rs.10 lakh is safe for revenue so that this is a welcome step as it would spare senior citizens from the ordeal of facing scrutiny in a routine way. But there is bound to be occasion for explaining any significant investments or expenditure, if so required.
The claim for refund, if any, is bound to be examined before issue of refund. The need to file return is not spared for senior citizens, if they have taxable income. The duty to file a correct return is also not spared, as there is no escape from interest for short-payment of self-assessment tax or advance tax, where applicable. There is also no immunity from penalty for under-statement of income, where applicable. Need for getting Permanent Account Number is also not avoided, if they have tax deductible amount to enable them to file Form 15H to avoid tax deduction at source on tax deductible payments, even if they have no taxable income.
