Tax Exemption: Government is giving exemption to these people in filing Income Tax, know the terms and conditions
ITR Filing 2025: The aim of this initiative of the government is to make tax compliance easier for senior citizens. Let us know under what circumstances this exemption is available, which form has to be filled and who will not get the benefit of this.
Tax Exemption: Nowadays most of the people are busy filing their Income Tax Return (ITR). Because if you do not file the return before the deadline, you have to pay a penalty. But do you know that if you are 75 years of age or more, then you may get exemption from filing the return. Let us tell you that this exemption is not for everyone, it is necessary to fulfill certain conditions for this.
The purpose of this initiative of the government is to make tax compliance easier for senior citizens. Let us know under what circumstances this exemption is available, which form has to be filled and who will not get its benefit.
Who can get exemption from ITR filing?
This exemption is available only to such senior citizens:
- Whose age is 75 years or more in the assessment year 2025-26.
- Who are residents of India.
- Whose source of income is only pension and interest received from the same bank.
That is, if your income comes from any source other than pension, such as rent, profit from shares, capital gains or income from business, then you will not get this exemption. Apart from this, if your pension and interest are received from two different banks or interest is being deposited in more than one bank account, then also you will be required to file ITR.
What to do to get exemption from ITR?
If you fulfill all the conditions mentioned above, then you do not need to file a return with the Income Tax Department. You just have to fill Form 12BBA and submit it to your bank. This form authorizes the bank to assess your total annual income, calculate your tax keeping in mind tax deductions (such as Section 80C, 80D etc.) and tax credits (such as 87A) and deduct TDS accordingly and deposit it to the government.
The bank will assess your total taxable income. This will include exemptions under section 80C, 80D etc. and tax credit under section 87A. The bank itself will complete the TDS process. If the bank has deposited the tax correctly, then you will not need to file ITR.
In these circumstances you will not get this exemption?
- If your pension and interest amount comes from different banks.
- If you have rent, capital gain, business income or any other source of additional income.
- If interest is deposited in more than one bank account.
- In such a situation, you will not get the benefit of this relief and will have to file ITR under the normal process.
Why is this exemption necessary for senior citizens?
Filing tax returns is often a difficult process for the elderly. It is not easy for them to understand and follow things like online system, rules for filling forms, deductions and tax calculations. That is why this law has been brought.
The government’s purpose behind bringing this rule is that senior citizens whose income is limited, regular and clear, do not have to depend on tax consultants and do not have to face problems related to tax compliance.
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