To provide relief to the senior citizens (whose age is 75 years or more) and to reduce compliance burden on them, the Finance Act, 2021, has inserted Section 194P. This provision requires a ‘specified bank’ to deduct tax if deductee is maintaining an account with it in which he is receiving his pension income. The CBDT has notified such ‘specified bank’ as banking company/scheduled bank defined under Sections 45A amp; 2 of RBI Act, 1934.To provide relief to the senior citizens (whose age is 75 years or more) and to reduce compliance burden on them, the Finance Act, 2021, has inserted Section 194P. This provision requires a ‘specified bank’ to deduct tax if deductee is maintaining an account with it in which he is receiving his pension income. The CBDT has notified such ‘specified bank’ as banking company/scheduled bank defined under Sections 45A amp; 2 of RBI Act, 1934.taxmann.com Latest Statutory HappeningsRead More
