Income Tax Exemption: Government is giving these people this exemption on filing income tax returns

Tax rules have been made simpler for senior citizens, but exemptions will be available only to those who fulfil all the conditions. If you have any doubts, consult your bank or tax expert.

Income Tax Exemption: If you are 75 years of age or more, 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 is its eligibility. If you do not file the return, then which form will have to be submitted. And also know under what circumstances exemption can be given from ITR filing.

Who gets this exemption?

Your age should be 75 years or more in the assessment year 2025-26. To get exemption in income tax, you must be a citizen of India. Along with this, your source of 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 gain and business.

What rules have to be followed?

Broadly, you will get exemption only on pension and interest received from the same bank. You have to fill Form 12BBA and submit it to your bank. If the form is submitted correctly, the bank will calculate your total income, deductions, tax and send the tax to the government.

What is the responsibility of the bank?

The bank calculates your total taxable income. Deductions like section 80C, 80D and exemptions like 87A are added. After that TDS i.e. tax is deducted and deposited. If all your conditions are met and the bank has deposited the tax, then you do not need to file ITR.

In what circumstances will you not get exemption?

If you have income from any other source – like rent, profit from shares, then you will not get exemption from filing income tax return. If you have an account in more than one bank and get interest from them, then also you will not get this exemption. You will not get the benefit of this relief if you get pension and interest from different banks.

Why is it necessary for senior citizens?

Often senior citizens have difficulty in understanding and filling online ITR filing or tax documents. This law was brought so that senior citizens whose income is very limited and clear do not need a tax consultant or complex procedures. The objective of the Government of India is to make tax compliance simple for senior citizens, provided they fulfill all the conditions.

Overall, if you are 75 years of age or more and your income is only from pension and interest from the same bank, then take advantage of exemption from ITR filing. Fill Form 12BBA and submit it to your bank. The bank will calculate your tax and deduct it itself. If you have any other type of income, normal ITR filing will have to be done.

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