ITR Filing AY 2025-26: Who Is Exempt Among Senior Citizens?

The Income Tax Department has specific provisions under the Income Tax Act, 1961, that exempt certain senior citizens from filing Income Tax Returns (ITR), provided they meet the required conditions. This applies to Assessment Year 2025-26 as well.

Eligibility Under Section 194P

Section 194P was introduced under the Finance Act, 2021, and has been in effect since April 1, 2021. This provision applies to senior citizens who meet all of the following criteria:

• They are 75 years or older
• They are residents of India
• Their income is only from pension and interest
• The interest income is earned from the same bank where they receive the pension
• The bank is classified as a ‘Specified Bank’, as notified by the government

Required Declaration Form

To be exempted from ITR filing, eligible senior citizens must submit Form 12BBA to their bank. This declaration form must include:

• PAN
• Pension Payment Order (PPO) number
• Total income
• Deductions under sections 80C to 80U
• Information regarding section 87A exemption
• Name of the pension-paying employer
• Bank details

Bank’s Role After Declaration

Once the form is submitted, the bank is responsible for:

• Calculating total income (pension + interest)
• Applying applicable deductions and exemptions under the Income Tax Act
• Deducting TDS based on the final tax liability

This process is meant to eliminate the need for the senior citizen to file an ITR.

Tax Regime Consideration

If the senior citizen opts for the old tax regime, they must provide investment proofs to the bank to claim deductions. Under the new tax regime, such proofs are not required, as most deductions are not applicable.

Conclusion

Senior citizens aged 75 or above with income restricted to pension and interest from the same specified bank may not be required to file ITR, provided they submit Form 12BBA and fulfill the conditions under Section 194P.

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