In a recent circular, the Central Board of Direct Taxes (CBDT) has clarified that, for tax purposes, a person would be deemed to have attained a certain age on the day preceding their birthday, rather than on the birthday itself.
“Higher tax exemption limits have been prescribed under the past Finance Acts for resident senior citizen taxpayers who have attained the age of sixty years. Even in such cases, the exemption limit is still higher for very senior citizens who have attained the age of eighty years. A doubt has been raised about the attainment of the aforesaid qualifying ages for availing higher exemption in cases of the persons whose date of birth falls on 1st April of calendar year. In other words, the broader question under consideration is whether a person born on 1st April of a particular year can be said to have completed a particular age on 31st March, on the preceding day of his/her birthday, or on 1st April itself of that year”, said in the Circular.
Although specific provision does not exist in this regard under the Income-tax Act, 1961, the Hon’ble Supreme Court had an occasion to consider a similar issue in the case of Prabhu Dayal Sesma vs. State of Rajasthan &, another 1986, AIR, 1948 wherein it has dealt with on the general rules to be followed for calculating the age of the person.
“The Central Board of Direct Taxes, in exercise of powers under section 119 of the Income Tax Act, hereby clarifies that a person born on 1st April would be considered to have attained a particular age on 31st March, the day preceding the anniversary of his birthday. In particular, the question of attainment of age of eligibility for being considered a senior/very senior citizen would therefore be decided on the basis of above criteria”, also said in the circular.
The CBDT also directed to take note of above position for ascertaining the age while computing tax liability of a taxpayer falling in ‘Individual’ category, being resident in India.
Read the full text of the circular below.
