CBDT deems people become older a day before their birthday for tax purposes
Q. CBDT has decided for tax purpose, a person would be deemed to have attained a certain age on the day ____ their birthday- Published on 01 Aug 16
d. none of the above
Central Board of Direct Taxes has decided that for tax purposes, a person would be deemed to have attained a certain age on the day preceding their birthday rather than the birthday itself.
- The issue is vital for those turning 60 to 80 years of age on April 1, since these two ages bring income tax exemptions with them applicable to senior and very senior citizens.
- CBDT in exercise of powers under section 119 of the Act holds that person born on April 1 would have been considered to attain a particular age on March 31, the day proceeding the anniversary of his or her birthday.
- Individuals will now benefit from senior citizen exemptions in the year they turn 60 rather than in the next year.