ITR Filing for AY 2025–26: Understanding Form Selection for Senior Citizens

As the income tax filing season for the Assessment Year 2025–26 approaches, taxpayers across India are preparing to meet their obligations. Among them, senior citizens have a unique set of exemptions and filing requirements under the Income Tax Act. According to a news report, selecting the correct ITR form is critical for accurate and compliant filing, especially for senior and very senior citizens.

Who Qualifies as a Senior and Very Senior Citizen?

In the context of income tax filing in India:

• Senior Citizens are individuals aged 60 years or above but below 80 years at any time during the financial year. 
• Very Senior Citizens are individuals aged 80 years or above during the financial year. 

The basic exemption limits vary accordingly:

• ₹3,00,000 for senior citizens 
• ₹5,00,000 for very senior citizens 
• ₹2,50,000 for individuals below 60 years 

These limits define the threshold up to which income is not taxable. However, exemptions do not automatically exempt one from filing returns. Filing requirements still apply depending on income sources and amounts.

Choosing the Right ITR Form for AY 2025–26

The Income Tax Department has prescribed different forms based on the taxpayer’s income type and other factors. Here’s how senior citizens can determine which form is applicable:

ITR-1 (Sahaj)

Who can use it:
Residents with total income up to ₹50 lakh from salary, pension, one house property (excluding loss brought forward), and other income (excluding lottery winnings and income from racehorses).

Who cannot use it:

• Senior citizens who are directors in a company 
• Individuals who held unlisted equity shares at any point in the previous year 
• Persons with foreign assets or foreign income 

This is the most commonly used form for salaried or pensioned senior citizens with simple financial profiles.

ITR-2

Who can use it:
Senior citizens with income from multiple properties, capital gains, or foreign sources. It also covers those who are not eligible for ITR-1 and do not have income from a business or profession.

Who cannot use it:
Those earning business income or under presumptive taxation.

ITR-2 is suitable for senior citizens with a slightly more complex income structure, such as investments or capital gains.

ITR-3

Who can use it:
Senior citizens who earn income from business or profession. It includes income under the head ‘Profits or Gains from Business or Profession’, and is applicable when the taxpayer does not fall under the categories of ITR-1, ITR-2, or ITR-4.

This form is comprehensive and accommodates those involved in business or professional activities.

ITR-4 (Sugam)

Who can use it:
Senior citizens who opt for presumptive taxation under Sections 44AD (business) or 44ADA (profession). The form is for those with a total income up to ₹50 lakh and having business income computed under these sections.

Who cannot use it:

• Individuals with more than one house property 
• Directors of a company or those holding unlisted shares 
• Persons earning income from capital gains or foreign sources 

ITR-4 simplifies filing for senior citizens opting for the presumptive income scheme.

Conclusion

The choice of the appropriate ITR form for AY 2025–26 depends heavily on the nature and source of a senior citizen’s income. Filing the wrong form may lead to rejection or delays in processing returns. It is advisable to carefully read the form instructions or consult a tax expert for clarity based on individual cases.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.