Senior citizens will soon be able to their income tax returns online for assessment year 2025-26. The I-T department grants several exemptions for older citizens on the basis of income, age and other factors.

Senior citizens and super senior citizens

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 a senior citizen. The Income Tax department also defines people above the age of 80 as ‘super senior citizens’.

What tax exemptions do they enjoy?

Senior citizens are given an exemption limit up to Rs 3,00,000 while very senior citizens (people above the age of 80) have a higher limit of Rs 5,00,000 available. The exemption limit for a non-senior citizen is capped at Rs. 2,50,000.

Can they skip filing their returns?

Senior citizens above the age of 75 whose only income sources are pension and interest (from the same bank) are exempt from filing income tax returns. It is pertinent to note that qualifying individuals have to first complete a declaration via Form 12BBA and submit it to a designated bank. They can only opt out of filing their Income Tax Returns once this process is concluded.

Which form can senior citizens use to file ITR for FY25?

People above the age of 60 will have to use various forms based on their income sources and the total amount they earned during the recently concluded financial year.

A significant number of people will be able to use ITR-1 (also known as Sajaj) which is for residents with a total income below Rs 50 lakh from salary, rental income, pension, and other sources. It cannot be used by any senior citizen who is also a director in a company or has held unlisted equity shares at any time during the previous year. Individuals who have assets located outside India or earns income from sources outside the country cannot use this form.

Senior citizens with income derived from property, capital gains or other sources beyond salary and pensions can use ITR-2 to file their returns. Meanwhile people above the age of 60 with income under the ‘head profits or gains of business or profession’ should make use of ITR-3. This form is also for people who are not eligible to file their Income Tax returns under ITR-1, ITR-2 and ITR-4. The latter pertains mainly to presumptive taxation under sections 44AD and 44ADA.