Exemption from ITR Filing 2024: The Income Tax Department allows senior citizens above a certain age to not file an income tax return (ITR) provided they meet specific conditions under the Income Tax Act, 1961.
The Income Tax Department provides specific exemptions, deductions, and advantages tailored for senior citizens and super senior citizens under the Income Tax Act, 1961. It also offers specialized income tax return (ITR) forms designed to facilitate tax filing and ensure eligible tax exemptions for senior citizens. Senior citizens and super senior citizens are exempted from liability to file income tax returns under certain conditions. But first, let us understand who are senior citizens and who are super senior citizens for income tax return filing purposes.
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as senior citizen for income tax purposes. A super senior citizen is an individual resident who is 80 years or above, at any time during the previous year.
Section 194P of the Income Tax Act, 1961 provides conditions for exempting senior citizens from filing income tax returns aged 75 years and above.
a. Senior citizen should be of age 75 years or above;
b. Senior citizen should be ‘Resident’ in the previous year;
c. Senior citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension;
d. The senior citizen will submit a declaration to the specified bank;
e. The bank is a ‘specified bank’ as notified by the central government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
f. Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Pensioners earning below Rs 50 lakh in the relevant financial year can opt for Sahaj, also known as ITR-1, for tax filing. Individuals receiving income from property, other sources, or capital gains should use ITR-2. Pensioners earning income from businesses or professions should choose between ITR-3 or ITR-4.
ITR 1: Suitable for senior citizens or super senior citizens with income from salary, pension, rental income, or other sources like interest.
ITR 2: Appropriate for those with income from salary, pension, rental income, and capital gains from shares or property sales.
ITR 3: For individuals earning income from business or profession, excluding income under presumptive taxation.
ITR 4: Designed for taxpayers with income from business or profession eligible for presumptive taxation under sections 44AD, 44ADA, etc.
Senior citizens are given basic exemption limit of up to Rs 3 lakh, while super senior citizens (80 and above) get exemptions on up to Rs 5 lakh income. Those who come under the new tax regime (Section 115BAC of the Income-Tax Act, 1961) also have a basic exemption limit of Rs 3 lakh.