ITR Filing Simplified For Seniors: Exemptions, Forms, And Key Documents

In terms of filing the income tax return (ITR), the filing for senior citizens is relatively the same as other individuals. One must start by analysing their financial records to get an approximation of their total income for the year, in case it exceeds the minimum income not chargeable to tax as applicable to them, or if they fall in the other criteria where one is required to file their ITR for a financial year even otherwise.

Who Is Exempt? Understanding Section 194P And Eligibility Criteria

"A specific exemption from filing ITR is available under section 194P of the Income Tax Act, to a specified senior citizen who is above the age of 75 years, and whose income during the year comprises only pension and interest income. One must check and if they satisfy the conditions mentioned in that section, they can avail this benefit," says Ritika Nayyar, Partner, Singhania & Co.

However, if they are not eligible for the exemption, they must file the ITR. They should begin by analysing their various sources of income and which heads of income they fall into to be taxed as per the Income Tax Act. Through this, one must prepare a computation of income and total tax liability. 

Choosing The Right Tax Regime And ITR Form

"At this time, it would be important to revisit the choice of tax regime depending on their annual financial needs, savings, and investments done during the year, etc. While the new regime offers lower tax rates with more widespread slabs, the old regime offers various investment-linked as well as other medical deductions," says Nayyar. 

The above also helps to determine which ITR form to use for filing of the return. For instance, ITR 1 is for resident taxpayers with income up to Rs 50 lakh and where income comprises only salary, one house property, pension, and other sources like interest. "Pension income is considered as 'Income from Salaries' for the purpose of income tax, and senior citizens having only pension income and interest income can usually file this form. However, while filing the same, one must go through the comprehensive list of conditions for using the respective form," says Nayyar. 

Essential Documents For Hassle-Free Filing

For seamless ITR preparation and filing, senior citizens should have all relevant and necessary documents in order, such as PAN, Aadhaar, Form 16, all bank statements, rental receipts, investment proofs, Form 26AS, Form AIS, pension certificates, etc. If required, they may seek assistance from professionals to help them in this process. The ITR must be filed carefully with correct information, and especially personal details such as PAN and bank details, which are very crucial for faster processing of refunds.

While the ITR is usually filed online however the department has given certain reliefs to super senior citizens (aged 80 years and above) where they have the option to file ITR Forms 1 to 4 through offline/physical paper mode.