As the new financial year rolls in, the season for Income Tax Return (ITR) filing has officially begun. While most salaried individuals and business owners are busy calculating their taxes, not everyone is required to file an ITR. The Income Tax Department offers exemptions to specific categories of taxpayers, helping them avoid the paperwork and compliance burden under certain conditions.
According to the Income Tax Act, every person whose annual income exceeds the basic exemption limit must file their ITR. In the current financial year, the tax filing threshold varies depending on the age and income type of the taxpayer. Individuals whose income surpasses the exemption limit set by the government must submit their ITR, whether salaried or self-employed.
However, there are exceptions to this rule, and the Income Tax Department has provisions for exempting specific groups from filing returns.
One major relief under the Income Tax Act is provided to senior citizens aged 75 years and above. If their income comes exclusively from pension and interest earned from savings or fixed deposits in the same bank, they are not required to file an ITR.
This exemption is designed to simplify tax compliance for the elderly, many of whom depend solely on fixed pension payouts and interest income. However, the exemption applies only if the pension and interest are credited to the same bank account.
Senior citizens who wish to avail of this tax relief must submit Form 12BBA to their respective banks. This form acts as a declaration of income, allowing the bank to deduct the applicable tax at source (TDS) on both the pension and interest.
Once this form is submitted and the correct tax has been deducted, these individuals are no longer required to file an ITR. However, this exemption applies only under the condition that the taxpayer has no other income source apart from pension and bank interest.
Even if someone’s income is below the taxable limit, filing an ITR can be beneficial. Many taxpayers file ITR to claim refunds on excess TDS deducted or to establish financial records for visa processing, loan applications, or government benefits.
That said, senior citizens covered under the exemption rule can enjoy peace of mind, knowing that their tax compliance is taken care of as long as the bank deducts the tax accurately after the 12BBA form submission.
If you or your family members fall under this category, make sure to check eligibility carefully and complete the necessary formalities in time. The Income Tax Department's relaxation for senior citizens is a thoughtful initiative aimed at making tax compliance easier for those with limited income sources.
(Disclaimer: This article is based on general financial information. Please consult your tax advisor or verify details on the Income Tax Department's official website before filing.)
