As the income tax return (ITR) filing process for the financial year 2024-25 (assessment year 2025-26) begins, senior citizens need to understand how to file their returns correctly. The Income Tax Department offers several benefits to senior citizens, and knowing the right form and process can help save time and money.
Who is Considered a Senior or Super Senior Citizen?
According to income tax rules in India:
- Senior Citizen: A person aged 60 years or more but less than 80 years.
- Super Senior Citizen: A person aged 80 years or more.
Different tax slabs and exemptions apply to each category.
Income Tax Slabs and Exemptions for Senior Citizens
Senior and super senior citizens enjoy higher exemption limits compared to others:
- Senior Citizens (60–79 years): No tax on income up to ₹3,00,000.
- Super Senior Citizens (80+ years): No tax on income up to ₹5,00,000.
- General taxpayers: Income up to ₹2,50,000 is tax-free.
These exemptions make a big difference for retired individuals with limited income sources.
When Senior Citizens Can Avoid Filing ITR
Some senior citizens don’t need to file returns at all. Here’s when:
- If you are 75 years or older, and
- Your income comes only from pension and bank interest, and
- Both are received in the same bank account
Then you may get exemption from filing ITR. But to avail this, you need to:
- Fill Form 12BBA, and
- Submit it to the bank where your pension and interest are credited.
Once accepted, the bank deducts the applicable tax, and filing ITR is not needed.
Choosing the Right ITR Form for FY 2024-25
Selecting the correct ITR form is very important. Here’s what senior citizens should know:
- ITR-1 (Sahaj): For income up to ₹50 lakh from salary, pension, one house property, or other sources. Cannot be used by company directors or those with foreign income.
- ITR-2: For those with income from capital gains, more than one property, or foreign sources.
- ITR-3: If you are earning from business or profession, or not eligible for ITR-1/ITR-2/ITR-4.
- ITR-4: For presumptive income from business or profession under sections 44AD, 44ADA, or 44AE.
Most retired individuals with pension income and fixed deposits usually file using ITR-1. But if you earn rental income or capital gains, ITR-2 or ITR-3 may apply.
Key Points to Remember While Filing ITR
- Use correct ITR form based on your income.
- Mention all income sources clearly, including pension and bank interest.
- Claim deductions like Section 80C, 80D, 80TTB, etc.
- File ITR online through the Income Tax e-filing portal.
- Prefer filing under the old tax regime to enjoy senior citizen benefits unless new regime suits your income type.
