ITR filing in 2025, pensioners are looking for clarity on if they need to file Income Tax Returns (ITRs) or not? Weather its mandatory for them to file the return after retirement or they are exempted?
Nevertheless, some are exempted under special provisions, most of the retired people still need to file return on the basis of their income profile and age.
Pension Income Is Taxable in Most Cases
Pension received after retirement is termed as “salary income” under Indian tax law. Hence, pensioners are required to file an ITR if their total income surpass the basic exemption limits. For FY 2024–25 (AY 2025–26), the exemption is Rs.3 lakh for senior citizens (aged 60–79) and Rs.5 lakh for super senior citizens (aged 80 and above) as per the old tax rule.
If there is an additional income of pensioners, in any forms such as savings interest, fixed deposits, rent, or capital gains, they are officially required to file the return. Additionally, they are entitled to claim for a refunds on any excess Tax Deducted at Source (TDS) or to carry forward capital losses, filing a return before the deadline is crucial.
Section 194P: Relief for Specific Senior Citizens
One prominent exception is accessible under Section 194P. Resident senior citizens who are aged 75 or above and who only receive their pension along with the interest from the same bank, are exempted from filing the return, only if they submit Form 12BBA to their respective bank. In such cases, the bank takes applicable taxes on behalf of the taxpayer.
Deadline and Documentation
The last date of filing the ITR for financial year 2024–25 has been extended to September 15, 2025. Pensioners can now use ITR-1 (Sahaj) for upfront income or ITR-2 for any other income sources.
Also Read: ITR Filling AY 2025-26 Deadline: ITR Filing For Teachers In 2025? Here’s Why You Shouldn’t Ignore It
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