The last date for filing income tax returns for 2025-26 for pensioners and senior citizens with non-professional income is July 31. In such a situation, it is important to understand who has to file ITR, who does not and which tax system is beneficial for you. 1. Those above 75 years of age are exempted from filing ITR – If the age is 75 years or more then you can be exempted from filing ITR under Section 194P. – Income is only from pension. Interest income is only in the same bank where the pension comes. If Form-125 is deposited in the bank, then the bank will itself calculate the tax and deduct TDS. After this you will be exempted from filing returns. Caution: This exemption will not be applicable in case of other income like shares, mutual funds, rent or profit. 2. You can choose the regime which is beneficial in tax calculation – From the financial year 2025-26, the new tax regime (Section 115BAC) is the default regime. To opt for the old system, the option has to be clearly opted while filing ITR. – The old arrangement may be beneficial – if investment, health insurance premium (80D), home loan interest or other deductions in Section 80C are high. – The new system can be profitable if the deductions are low, the normal income is up to ₹ 12 lakh. Before filing ITR, do tax calculations in both the regimes. 3. You can still avail these exemptions in the old tax regime – Section 80C: Deduction of ₹ 1.5 lakh on LIC, PPF, NSC, SCSS, FD investments. – Section 80D: Deduction up to ₹ 50 thousand on health insurance. If there is no health insurance, there is a deduction of up to Rs 50,000 on actual medical expenses. – Section 80TTB: Deduction of up to ₹ 50 thousand in interest income on deposits in banks, cooperative banks or post offices, but NRIs do not get this benefit. – Section 80DDB: Rs 1 lakh on treatment of serious diseases like cancer, kidney failure. Deduction up to Rs. 4. Fill ITR for refund if TDS has been deducted – For senior citizens, if the interest income in a bank exceeds ₹50 thousand, the bank deducts 10% TDS. – If your total income is not taxable then you get the relief of not deducting TDS after submitting Form-15H in the bank at the beginning of every financial year. – If you have not filed Form-15H at the beginning of the financial year and the bank has deducted TDS then it is mandatory to file ITR to get the refund. – It is also necessary to do e-verification within 30 days of filing ITR, otherwise the return will be considered incomplete. Know where and on what income exemption is being given. Exemption in Old Regime: 60-80 year olds are exempted on income up to ₹ 3 lakh and 80+ year olds are exempted on income up to ₹ 5 lakh. Relaxation in the new regime – In this the limit for all categories is Rs 4 lakh. Section 87A-Exemption- ₹12,500 on income of ₹5 lakh in old. Rebate in new regime – ₹ 60 thousand on income of ₹ 12 lakh. till. (Note: Exemption of Section 87A is not applicable on income from capital gains like equity shares etc.)
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Income tax return can be filed till 31st July: These 4 things will give tax relief to senior citizens, this guide will help.
