No Income Tax Return filing for senior citizens above 75 years

The recently concluded budget announcement has brought cheers to the senior citizens. The same day (i.e. February 1st) ‘The Economic Times’ published a lengthy article delineating the finer points which we felt shall be of great help to our readers as well. So, we are reproducing the same for your benefit.

“Budget 2021 proposes to exempt senior citizens who are 75 years or above and have only pension and interest income in a financial year, from filing income tax returns. As per the Budget 2021 proposals, they will not be required to file income tax returns (ITR) anymore. The bank paying income to them will deduct the necessary tax from their bank account.

As per the explanatory memorandum, such benefit will be available only if the following conditions are satisfied:

1) The senior citizen is resident in India and of the age of 75 or more during the previous year;

2) He has pension income and no other income. However, in addition to such pension income he may have also have interest income from the same bank in which he is receiving his pension income;

3) This bank is a specified bank. The Government will be notifying a few banks, which are banking company, to be the specified bank; and

4) He shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.

Once the declaration is furnished, the specified bank would be required to compute the income of such senior citizen after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year and deduct income tax on the basis of rates in force. Once this is done, there will not be any requirement of furnishing return of income by such senior citizen for this assessment year. This amendment will take effect from 1st April, 2021.

This has come after Budget 2018 had announced several tax law changes to provide more tax benefits to senior citizens. These include tax benefits such as introduction of a new section 80TTB in the Income Tax Act, 1961, deduction for medical expenditure in case of no health insurance coverage etc.

Shalini Jain, Tax Partner – People Advisory Services, EY India says, "In view to ease the compliance burden for our elderly, the government has done away with the requirement of filing tax returns for senior citizens of age 75 years or above subject to satisfaction of conditions." Under section 80TTB, seniors can claim up to Rs 50,000 interest income received from banks and post offices as a deduction from their income thereby making this type of interest income for senior citizens effectively tax exempt up to Rs 50,000.

Earlier, senior citizens were entitled to similar tax-exemption for interest income from bank and post office savings accounts but only up to Rs 10,000 under section 80TTA. The Rs 50,000 deduction was the biggest tax relief announced in Budget 2018 for most senior citizens as they earn most of their income through interest from bank FDs and post office schemes. TDS limit for bank fixed deposit interest was also hiked simultaneously for senior citizens. Along with that, Budget 2018 increased the limit on health insurance premiums paid that can be claimed as a deduction from income from Rs 30,000 to Rs 50,000 for senior citizens. Additionally, if a senior citizen does not have a medical insurance policy and has incurred medical expenditure during the financial year, then also he/she can claim deduction of up to Rs 50,000 for such expenses under section 80D of the Income Tax Act.

Earlier, a deduction for medical expenditure up to Rs 30,000 was allowed for super senior citizens aged 80 years and above if they were not covered by any medical insurance policy. For senior citizens suffering from certain critical illnesses, as specified in Rule 11DD of the income tax rules, that are covered under section 80DDB of the Act, deduction limit was raised to Rs 1 lakh for all senior citizens, from the earlier Rs 60,000 (in case of senior citizens) and Rs 80,000 (in case of very senior citizens).

The government has also extended the deadline by which seniors can invest in Pradhan Mantri Vaya Vandana Yojana (PMVVY) to March 31, 2023. The maximum amount The maximum amount that can now be invested in the scheme is Rs 15 lakh from the previous limit of Rs 7.5 lakh as announced in Budget 2018.”

Do you need a nurse, or an attendant

Porosh often receives queries on services for an attendant and at times, nurse as well. But what surprises us is the blurred understanding in the minds of the prospective members regarding the roles played by a nurse and an attendant.

Let us say a query starts on a note that a trained nurse is required to take care of one’s ailing, or terminally ill mother/ father, or in-laws. Usually we then ask what what is it that the nurse is expected to do. A typical response ranges from performing daily household chores like cooking, feeding, administering medicine on time, cleaning bed, assist in bathing and so on and so forth. A discerning reader will realize that the requirements are a mix of the roles of an attendant and that of a nurse. In this context a nurse who is skilled at feeding an ailing patient and administering medicine shall never agree to prepare food, clean bed and provide assistance towards bathing.

So, one may ask– Do we require both – a nurse and an attendant? In the light of the above example only the answer is ‘no’. If an attendant has the skill of feeding an ailing patient and can administer medicine on time only one person can do the needful but the services charges will obviously be on the higher side.

However, if the concerned member is terminally ill then two persons are required because during an emergency (like sudden fall of sugar level, fluctuation of BP, fit of unconsciousness, feeling of breathlessness etc.) a trained nurse can take appropriate initial steps till such time a doctor turns up. We have been a witness to such situations on a number of occasions where timely intervention by a nurse helped in saving lives. For certain, one cannot expect an attendant to do so.

Therefore, requirement for a nurse and/ or attendant depends on the complexity of the situation. We have realized over the years that if the health conditions of a senior citizen is fragile most bed-ridden and on medication with no one else to take care of then both are required. However, if the individual is of reasonably good health and take care of oneself and not suffering from dementia etc. then seeking services of an attendant should be good enough.

FAQs on Covid vaccine

We are reproducing an article published in the Times of India on January 16th which believe is going to be of common interest to our readers. Here it goes:

“States across India will begin the first phase of COVID vaccination from January 16. Dry runs have been completed and vaccine doses have been shipped to centres.In the first phase of inoculation, vaccine doses will be administered to over 3 crore healthcare workers, followed by essential staff, senior citizens and the general public.

As exciting as a time it is for people to finally have access to a COVID vaccine after months’ long wait, there is also a lot of curiosity in people’s minds about vaccines being administered to them. It’s natural to have questions, and in fact, as many believe, higher education and awareness will prepare people to get the vaccine in a better way, behave responsibly and safeguard themselves.

So, as India gears up to get vaccinated and banish away COVID, we answer some questions, common do’s and don’ts.

a) Covaxin vs Covishield: Will people get a choice?

With frontrunner Pfizer’s COVID shot being subjected to a clinical study, homegrown vaccines, Bharat Biotech’s Covaxin and Oxford University- Serum Institute’s Covishield will be the two vaccines that shall be used right now.

Unlike what is being presumed, people won’t be offered a choice to pick between the two vaccines, which has been confirmed by health officials as well. The same has also been followed by countries which have approved more than one vaccine right now.

Both Covaxin and Covishield have been approved for emergency use authorization and have satisfactory efficacy rates. They have been traditionally developed and will work to mount an increased antibody response in the body to prevent SARS-COV-2 from attacking in the future.

The vaccine will be offered free of charge in the first round of inoculation.

b) What special precautions do you need to take before getting vaccinated?

There is no official guidance as to what one can expect, or if there is any need for special steps to be followed before one's turn comes up. The only thing authorities warn people about is to take a personal decision- research and make a well-suited call to see if the vaccine would be suited for them or not. For example, pregnant women, or those with high co-morbidities may consider delaying inoculation.

As basic measures, experts feel that people shouldn't indulge in activities which could harm their health, or put themselves at risk a day or two before their turn for vaccination.

Avoiding stress, and any activities which could impair a person's immunity is not advised. Be aware and well-rested before your turn comes up.

c) What will happen at the vaccination centre?

As reported, people will be allotted a time slot for their turn for vaccination, which will happen in selected medical centres right now.

Remember, a COVID vaccine is no different from other vaccines. However, since we are still in the middle of a pandemic, and a person won't be considered fully safe and immune till the time he/she gets the second dose, social distancing measures, mask-wearing and hand hygiene should be adhered to in the centre as well. Maintain six-feet distance and wear a mask while a shot is being given to you.

The vaccines will be administered via an intramuscular route, a small area on your arm will be first sterilized with a solution, and then the vaccine dose will be injected using a syringe. People who are successfully vaccinated will get a receipt informing them of the scheduled date of the next vaccine dose as well.

d) What to expect immediately after taking the vaccine shot?

After receiving the vaccine shot, as a safety measure, people might be asked to wait for a while (15-20 minutes). This is usually done to observe and attend to any reactions that may happen. Once done, a person is declared safe to go home.

Since vaccines work to create inflammatory reactions in the body after administration, one can expect certain side-effects.

While severe or fatal side-effects have been rarely recorded, most side-effects are reactogenic in nature. After you get the vaccine, be prepared to experience the following side-effects in the first 2-3 days:

-Fever

-Headache

-Muscle pain/ sensitivity in the area of administration

-Fatigue

-Chills

All these effects are considered to be a normal, good sign that a vaccine is doing its said job. These symptoms usually resolve on its own, but taking an over the counter medication may relieve discomfort.

Right now, it's also important for people to learn that a single dose of the vaccine won't really protect them. Getting both shots of the vaccine, as per schedule (12 or 28 days apart) will fully protect the body. If you don't take precautions, or get the second dose, you can still be at risk of catching COVID-19.

e) When would you know if you have a risk of suffering from adverse reactions?

The side-effects after getting a vaccine shot usually start to resolve 2-3 days after they start to show. Adverse reactions or side-effects are still unknown right now. However, people with allergies or those who have had bad experiences with vaccines in the past should be careful.

In general, if you experience any unusual side-effect which hasn't been listed down, impairs your health (such as shock, major swelling, redness or rashes), consider calling a doctor.

f) What should you do if suffer from reactions?

As per CDC recommendations right now, even the ones who do end up suffering from some side-effects should wait and get the second shot of the vaccine.

If you do end up suffering from unfortunate reactions after getting the vaccine, approach a doctor for help. He/she will help you decide the next course of action and specialize treatment.

Extreme reactions can range from shock, fainting, breathlessness.

g) Are there certain things you shouldn't do after getting the vaccine?

Again, there are no official guidelines or dos and don'ts to be followed after inoculation right now.

However, do remember that vaccines work on harnessing the body's inflammatory response. So, indulging in any task, or habit which disturbs that would be a bad call. It could also end up delaying metabolic functioning and generating necessary immune response.

As recent studies have pointed out, doing things which sustain healthy living is the best way to ensure that a vaccine does its job. So, work to alleviate stress levels, get ample sleep, be physically active and most importantly, eat well. Extreme obesity, stress, anxiety may diminish the working of the vaccine.”

We are sure our senior members, their children who repose trust on Porosh and many others who may have heard about us shall find this article really helpful. Incidentally, we have also started planning to get our members vaccinated after assessing the initial reports pertaining to the after-effect of vaccination.