Income Tax Return (ITR) filing season for the assessment year 2025–26 has started, and senior citizens need to file their returns correctly to enjoy the full benefits of exemptions and deductions. Many senior citizens are confused about which ITR form to use and how to go about the process without stress. To make it easier, here’s a complete step-by-step guide in simple language.
Who is a Senior and Very Senior Citizen, According to Income Tax Rules?
As per the Income Tax Department:
- Senior Citizens are individuals aged 60 to 79 years.
- Very Senior Citizens are individuals aged 80 years and above.
These age groups get higher fundamental exemption limits under the old tax regime:
- Senior Citizens: No tax on income up to ₹3 lakh.
- Very Senior Citizens: No tax on income up to ₹5 lakh.
Which ITR Form Should Senior Citizens Use?
Choosing the correct ITR form depends on the source of income. Here’s a breakdown:
✅ ITR-1 (Sahaj) – For Most Pensioners and Retirees
- Use if you earn from a pension, one house property, and interest (like FD or savings account interest).
- Income should be up to ₹50 lakh.
- Only for resident Indians, not for those who have foreign assets.
- Suitable for most retired government or private employees.
✅ ITR-2 – If You Have Capital Gains or Multiple Properties
- Use if you sold mutual funds, shares, or property.
- Also, use if you own more than one house.
- Required if you have foreign income or assets.
✅ ITR-3 – For Senior Citizens with Business Income
- Use if you earn from a business or profession, including consultancy or freelance work.
- It is not very common for senior citizens unless they are self-employed.
✅ ITR-4 (Sugam) – For Presumptive Taxpayers
- Use if you declare income under the presumptive taxation scheme (Section 44ADA/44AD).
- Useful for small traders, shopkeepers, or professionals.
Can Some Senior Citizens Skip Filing ITR?
Yes, the Income Tax Department provides relief to citizens above 75 years in some cases.
If they:
- Have only pension and interest income,
- And their bank deducts TDS correctly,
They do not need to file an ITR, but they must:
- Submit Form 12BBA to their bank, declaring that they don’t have any other income source.
- This benefit is available only for specified banks approved by the government.
Step-by-Step Guide to File ITR for Senior Citizens
Here’s how senior citizens can easily file their ITR online:
Step 1: Collect Required Documents
Before starting, gather these:
- Form 16 (for pensioners)
- Bank interest certificates
- Form 26AS or AIS/TIS (for tax details)
- Investment proofs (for claiming deductions)
- Details of any rent received or capital gains
Step 2: Log in to the Income Tax Portal
- Visit: www.incometax.gov.in
- Login using PAN and password (or create an account if new)
- Update personal details like bank account, mobile, and email if required.
Step 3: Choose the Right ITR Form
- Based on your income type, choose ITR-1, ITR-2, etc.
- You can file the form online directly on the portal or download the utility.
Step 4: Check Pre-filled Data
- Income and TDS details from Form 26AS and AIS will be pre-filled.
- Cross-check every detail carefully with your documents.
Step 5: Enter Remaining Details
- Add other income like rent and bank interest if not auto-filled.
- Claim deductions under 80C, 80D (e.g., LIC, PPF, health insurance), etc.
Step 6: Select Tax Regime
Senior citizens can choose between:
- Old Tax Regime (with higher exemption limits and deductions)
- New Tax Regime (lower tax rate but fewer deductions)
To opt for the old regime:
- Submit Form 10-EEA before filing ITR (not needed if filing ITR-1 or ITR-2 with no business income).
Step 7: Check Tax Payable or Refund
- The Portal will auto-calculate tax liability.
- If you paid excess TDS, the system will show a refund.
Step 8: Submit Return and E-Verify
- After filing, e-verify the return using Aadhaar OTP, net banking, or bank account.
- If you don’t e-verify within 30 days, the return becomes invalid.
What Happens After You File ITR?
- After successful e-verification, the return is processed by the IT Department.
- If a refund is due, it will be credited to your linked bank account within a few weeks.
- You can track your status under the “My Account” section on the portal.
Key Benefits for Senior Citizens in ITR Filing
- Higher exemption limits in the old regime (₹3L/₹5L).
- 80D deduction for medical insurance up to ₹50,000.
- No advance tax is required if they don’t have business income.
- Extra benefit under Section 80TTB: Interest income up to ₹50,000 is tax-free for seniors.
- Can get assistance from TRPs (Tax Return Preparers) for help in filing.
Few Important Tips
- Do not ignore Form 26AS and AIS – always check the tax deducted.
- Even if return filing is not mandatory, it helps in getting refunds, loan approvals, and visa applications.
- Always use the latest version of ITR utilities or online forms.
- Save a copy of the acknowledgement (ITR-V) after submission.
Disclaimer:
This article is for informational purposes only. Please consult a certified tax expert or financial advisor before filing your income tax return, especially if you have multiple income sources or are unsure about your ITR form selection.
Source: Financial Express
