Taxpayers who have to file income tax returns for assessment year 2025–26 need to select the correct form based on their specific income category. Under the provisions of the Income Tax Act senior citizens obtain various tax benefits and they may avoid filing tax returns completely after certain conditions are met. Taxpayers who must file their returns should pick their appropriate ITR form according to their earnings amounts.
Senior citizens over age 75 can avoid filing income tax returns if their only income comes from bank interests and pensions.
People who have reached their 75th birthday and receive only bank pension and bank interest payments do not need to submit Tax Return forms. The tax filing exemption became effective in April 2021 after Section 194P of the Income Tax Act implementation. Eligible people who want to utilize this benefit need to use Form 12BBA to submit their declaration at their designated bank. The initial exemption level for senior citizens amounts to Rs 3,00,000 but rises to Rs 5,00,000 for those who are part of the very senior citizen category (80 years+) Taxpayers who are younger than 60 need to follow the Rs 2,50,000 threshold.
Which ITR Forms Can Senior Citizens Use For FY25?
Senior citizens must select an ITR form based on their income level and sources:
- ITR-1 (Sahaj): Suitable for residents with a total income under Rs 50 lakh from salary, one house property, pension, and other sources. It cannot be used by those who are company directors, hold unlisted equity shares, or have foreign assets or income.
- ITR-2: Meant for those earning income from multiple properties, capital gains, or other sources apart from salary and pension.
- ITR-3: For individuals earning income from business or professional activities, or who are not eligible to file under ITR-1, ITR-2, or ITR-4.
- ITR-4: Used by those under presumptive taxation schemes as per Sections 44AD and 44ADA.
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