Senior Citizens Above 75: You May Not Need to File ITR in 2025

G GOWTHAM
In a major relief for the elderly, the government has announced that certain senior citizens will no longer be required to file Income Tax Returns (ITR) for the financial year 2024-25. This exemption is aimed at simplifying tax compliance for retirees with simple sources of income, such as pensions and bank interest.

However, there are specific conditions, and not all senior citizens automatically qualify.


1. Who Is Eligible for ITR Exemption?

The Income Tax Act provides relief under Section 194P for resident senior citizens aged 75 years or above.

Key condition: The exemption applies only if income comes solely from pension and interest credited in the same bank account.

If the individual earns from other sources like:

Rent

Business income

Capital gains

Interest from other banks

…then filing an ITR is still mandatory.


2. Pension and Interest Income Rules

The government has specified:

Primary source of income: Pension

Interest income: Must come only from the same bank account where the pension is credited

This ensures transparency and simplicity in tax calculation without the need for multiple income sources declaration.


3. Declaration to the bank Is Mandatory

Eligible senior citizens must submit a declaration form to their bank. The bank then takes over tax responsibilities:

Calculates tax liability

Deducts TDS (Tax Deducted at Source)

Ensures eligible deductions and rebates are applied, including:

Section VI-A (e.g., 80C, 80D)

Section 87A rebate

This reduces the hassle of digital filing and paperwork for the elderly.


4. Only Authorized Banks Can Handle This

Not every bank can provide this service. Only banks notified by the Central Government are authorized to:

Accept declarations

Deduct TDS

Manage tax compliance

This ensures proper handling of the exemption and safeguards the interests of senior citizens.


5. Senior Citizen vs. Super Senior Citizen

The Income Tax Act categorizes elderly taxpayers as follows:

Senior Citizens: Aged 60 to 79 years

Super Senior Citizens: Aged 80 years or above

However, the Section 194P exemption is specifically for those aged 75 and above, meaning:

Not all seniors benefit

Only those crossing 75 years and fulfilling the conditions are eligible


6. Why This Change Matters

Filing ITR can be a complex and stressful process for older citizens, especially those unfamiliar with wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital platforms.

Benefits of this exemption:

Reduces compliance burden

Saves time and effort

Ensures peace of mind for retirees

Helps focus on enjoying retirement years rather than worrying about paperwork

This is expected to benefit lakhs of senior citizens across India.


7. Key Takeaways

Senior citizens aged 75 years or above may be exempt from filing ITR.

Applicable only if income is solely from pension and interest from the same bank.

Declaration form submission to the bank is mandatory.

Only government-notified banks are authorized to handle this process.

Exemption is provided under Section 194P.

This move is a welcome relief for elderly taxpayers, simplifying tax compliance and helping them enjoy retirement without financial stress.

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