Tax filing 2024: What all senior citizens should know before filing taxes for AY2024-25 (2024)

Income Tax for senior citizens: As the deadline for income tax filing nears, it is imperative for senior and super senior citizens to comprehend the distinct provisions. The Income Tax Department has designated exemptions, deductions, and advantages designed for senior citizens and super senior citizens in accordance with the Income Tax Act, 1961. The income tax department offers specialized income tax return (ITR) forms for senior citizens to file their taxes and receive eligible tax exemptions.

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Seniors need to file taxes using specific ITR forms based on their income category. Pensioners earning less than Rs 50 lakh in the relevant financial year can use Sahaj, i.e., ITR 1 for tax filing. Those with income from property, other sources, or capital gains must opt for ITR-2. Pensioners earning from businesses or professions should file taxes using either ITR-3 or ITR-4.

Exemption limit

Senior citizens are entitled to a basic exemption limit of Rs 3 lakh, while super senior citizens (80 and above) have a limit of Rs 5 lakh. Those falling under the new tax regime (Section 115BAC of the Income-Tax Act, 1961) also have a basic exemption limit of Rs 3 lakh.

Apart from this, the tax rates vary accordingly: from no tax on income up to Rs 3 lakh to 30% on income exceeding Rs 10 lakh.

Form 16

Senior citizens and receive a salary income in the form of a pension have the right to obtain Form 16 from their employer. Form 16 includes a breakdown of their salary components, as well as the details of Tax Deducted at Source (TDS) for the specified financial year. Senior citizens can access a comprehensive overview of all their TDS-related information through a statement known as Form 26AS. This statement serves as a valuable tool for verifying the accuracy of TDS deductions performed on their income.


Senior citizens overlook claiming important tax deductions. Investors in the Senior Citizens Savings Scheme are encouraged to make use of the Section 80C deduction. Section 80TTB offers deductions up to Rs 50,000 for interest income received by senior citizens from their bank accounts. It is important to note that individuals opting for the new tax regime will not be eligible to benefit from these deductions.

Form 15H

Banks typically deduct TDS when the interest earned by a senior citizen individual surpasses the applicable threshold of Rs 50,000 in a financial year. Senior individuals can request their banks to refrain from deducting TDS if their income falls below the taxable limit. To do so, seniors can submit Form 15H to their banks. While filing tax returns, Form 15H can be kept handy.

Tax benefits

Senior citizens can avail exemptions on capital gains under the reverse mortgage scheme. The scheme allows them to monetise their property with certain tax benefits. Additionally, senior citizens can claim deductions on health insurance premiums up to Rs 50,000 and medical expenses related to specified diseases up to Rs 1 lakh.

Moreover, interest income up to Rs 50,000 from savings and fixed deposits is exempted from Tax Deducted at Source (TDS) if their total income falls below Rs 5 lakh. Furthermore, senior citizens are relieved from paying advance tax if they do not have any business income. These provisions collectively aim to provide financial relief and support to the elderly population.

Section 87A

Senior citizens can avail exemptions under Section 87A of the Income Tax Act. This section provides a tax rebate for individuals with an income below Rs 5 lakh, after deductions under Chapter VI-A. The rebate amount is limited to the total income tax payable or Rs 12,500 (Rs 25,000 in the new tax regime), whichever is less. This benefit is applicable to all resident taxpayers, irrespective of age or any category they fall under. The provision is valid for the assessment year 2024–25.

Section 194P

Under Section 194P of the Income Tax Act, individuals aged 75 years or above, receiving only pension income, and interest income from a specified bank account as an exception, may choose not to file their Income Tax Return (ITR). To do so, eligible seniors must fill out a declaration in Form 12BBA, which is submitted to the specified bank from which they receive their pension and interest income. The bank will then calculate and deduct the income tax based on the details furnished in the form.

Tax filing 2024: What all senior citizens should know before filing taxes for AY2024-25 (2024)
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