Microlesson · 5-min read

Section 194P — Senior Citizens (75+) Exemption from filing ITR

# Section 194P — TDS by Specified Bank for Senior Citizens aged 75+

## Purpose

Provides relief to senior citizens of age 75 years or more from filing return of income if all conditions are met.

## Who deducts?

Specified Bank (notified by CBDT) holding the senior citizen's pension account.

## Conditions for applicability

1. Payee is a Resident Individual aged 75 years or more during the previous year.

2. Has only Pension income + Interest income from the same specified bank.

3. Has furnished a declaration to the bank specifying income & deductions.

## Threshold

Income above Basic Exemption Limit.

## Rate

Slab rates (after considering deductions under Chapter VI-A and rebate u/s 87A).

## Effect

Once bank deducts TDS, the senior citizen is not required to file ITR.

Worked example

### Example 1

Example: Mr. K, 80 yrs, residing in India, has pension ₹6,00,000 and interest ₹2,00,000 from the same specified bank. Bank deducts TDS u/s 194P on tax computed at slab rate (after rebates / deductions). Mr. K need not file ITR.

⚠️ Common exam mistakes

Applying 194P where senior citizen has income from another source (e.g., rent / shares) — then conditions fail and ITR must be filed.
Applying flat 10% — 194P uses slab rate after considering Ch VI-A deductions.

Reference: 194P

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Section 194N — Cash Withdrawal

Section 194Q — Purchase of Goo

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