If you are 75 years or older, then you may not need to file ITR (Income Tax Return) this year. But this exemption is available only on certain conditions. If you want to take advantage of this, then know what its eligibility is. If you do not fill the returns, then which form will have to be given. And at the same time also know that in which circumstances ITR filing can be exempted.
Who gets this discount?
Your age should be 75 years or more in Assessment Year 2025-26. Income tax It is necessary to be a citizen of India for exemption in. Along with this, your income should be only pension and interest from the bank. If you get pension and bank interest from two different banks or have other income sources, then you must file ITR. Other income sources mean rent, capital gains and business.
Which rules have to be followed?
Broadly, you will get a discount only on pension and interest received from the same bank. You have to fill the form 12BBA in your bank and submit it. If the correct form is deposited, the bank will calculate your total income, deduction (discount), tax and send tax to the government.
What is the responsibility of the bank?
The bank withdraws your total taxable income. Discounts like section 80C, 80D -like deduction and 87A are added. After that TDS is deducted and deposited. If all your conditions are fulfilled and the bank has deposited tax, then you do not need to file ITR.
Which situation will not be exempted?
If you have income from any other means-like fare, profit from shares, then you will not get exemption from filing income tax returns. Even if your account is in more than one bank and gets interest from them, then this exemption will not be available. This relief will not be benefited if pension and interest from different banks.
Why is this necessary for senior citizens?
Often, elderly citizens have difficulty in understanding and filling ITR filing or tax papers online. This law was brought so that senior citizens whose income is very limited and clear does not need tax consultants or complex procedures. The aim of the Government of India is to simplify tax compliance for senior citizens, provided they fulfill all the conditions.
Overall, if you are 75 years or older and your income is only from pension and interest of the same bank, then take advantage of exemption from ITR filing. Fill the form 12BBA and submit it to your bank. The bank will cut your tax by calculating your tax itself. In case of any other type of income, normal ITR will have to be filled.