Consider the case of a senior citizen ( who is of the age of 60 to 80 years). If his only source of income is from interests from his FDs and the total income is less than the maximum amount not chargeable to income why should he be expected to file income-tax return? The Income-Tax Act should be amended to make it clear that filing tax return is optional if there is no tax liability.
For all individuals who are earning above the prescribed threshold level (without considering the deductions), it is mandatory by law to file Income Tax Return. There is however, a relaxation for senior and very senior citizens in terms of the minimum threshold level. The minimum threshold level for FY 2013-14 for individuals is Rs.2 lacs, for senior citizens (above 60 years) - Rs. 2.5 lacs and for very senior citizens (above 80 years) is Rs. 5 lacs.
Senior citizens are exempted from paying tax on income of up to Rs.3 lakhs for the Financial Year 2017-2018. If a senior citizen earns up to or less than the basic exemption limit, then it is not mandatory for them to file returns. However, filing taxes has many benefits. Many foreign countries ask you to furnish your IT returns before processing your visa. Filing IT returns is also helpful to get loans from banks. Also, you cannot ask for a tax refund without filing your returns.