When do you become sixty years old? CBDT Clarifies
INCOME up to three lakh rupees is exempted for every individual who is of the age of sixty years or more at any time during the previous year.
Now if Citizen A was born on 1.4.1956, when does he become sixty years old? Is it on 1.4.2016 or 31.3.2016. The crux of the problem is; can he avail the exemption for the financial year 2015-16?
A serious problem indeed for the CBDT.
The Board noted that although specific provision does not exist in this regard under the Income-tax Act, 1961, the Supreme Court had an occasion to consider a similar issue in the case of Prabhu Dayal Sesma vs. State of Rajasthan wherein it was observed:
"9....At first impression, it may seem that a person born on January 2, 1956 would attain 28 years of age only on January 2, 1984 and not on January 1, 1984. But this is not quite accurate. In calculating a person's age, the day of his birth must be counted as a whole day and he attains the specified age on the day preceding, the anniversary of his birthday. We have to apply well accepted rules for computation of time. One such rule is that fractions of a day will be omitted in computing a period of time in years or months in the sense that a fraction of a day will be treated as a full day. A legal day commences at 12 o'clock midnight and continues until the same hour the following night. There is a popular misconception that a person does not attain a particular age unless and until he has completed a given number of years. In the absence of any express provision, it is well settled that any specified age in law is to be computed as having been attained on the day preceding the anniversary of the birthday"
In view of the above judgment, the Central Board of Direct Taxes, in exercise of powers under section 119 of the Act, 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.
The field authorities are 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.
CBDT Circular No. 28/2016., Dated July 27, 2016