Which ITR Form Should Senior Citizens Use for FY 2024-25?

As the tax filing season nears, senior citizens and super senior citizens must ensure they choose the correct Income Tax Return (ITR) form. Doing so ensures not just regulatory compliance but also helps in claiming eligible benefits and deductions under the Income-Tax Act, 1961.

Who is a Senior or Super Senior Citizen?

According to Indian tax laws:

• Senior Citizens: Individuals aged between 60 and 79 years.
• Super Senior Citizens: Individuals aged 80 years or above.

Under the Old Tax Regime, senior citizens get a basic exemption limit of ₹3 lakh, while super senior citizens enjoy a higher exemption of ₹5 lakh. However, under the New Tax Regime, the basic exemption for all remains ₹3 lakh, with no added benefit for higher age.

Which ITR Form Should You Use?

Selecting the correct ITR form is key for a hassle-free filing process. Here’s a breakdown:

• ITR-1 (Sahaj): For individuals with a total income of up to ₹50 lakh from sources like salary, pension, interest, and one house property.
• ITR-2: For individuals earning from capital gains or owning more than one house property.
• ITR-3: For individuals earning income from a business or profession.
• ITR-4: For those under the presumptive income scheme (sections 44AD/44ADA).

Senior citizens mostly fall under ITR-1 or ITR-2 unless they’re running a business or professional service.

Common Mistakes to Avoid

Many senior citizens assume that if TDS (Tax Deducted at Source) is already applied to their income, they do not need to file a return. This is a common misconception. Even if TDS is deducted, filing is mandatory to report income accurately and claim refunds if applicable.

Full disclosure of interest income, rental income, dividend, or commission is essential. Incomplete reporting could trigger penalties or scrutiny.

Deductions and Benefits Available

Senior and super senior citizens can claim several deductions to reduce taxable income:

• Section 80D: Up to ₹50,000 for health insurance premiums
• Section 80TTB: Up to ₹50,000 on interest from savings and fixed deposits
• Section 16(ia): ₹50,000 standard deduction on salary or pension income

These deductions can significantly lower the tax burden under the old regime.

Tax Slabs for AY 2025-2026

Old Tax Regime – Senior Citizens (60–79 years):

Old Tax Regime – Super Senior Citizens (80+ years):

New Tax Regime – applicable to individuals over 60 years and under 80 years:

Conclusion

Choosing the correct tax regime and ITR form is crucial for senior citizens. While the old regime provides higher exemptions and more deductions, the new regime offers simplified slabs with fewer benefits. Seniors must compare both options based on their income composition and deductions to ensure maximum tax efficiency and avoid unnecessary liabilities during retirement.

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.