Senior citizens exempt from filing ITR: conditions

A resident senior citizen aged 75 or above may be exempt from filing a return if the only income is pension and interest, the interest comes from the same specified bank that pays the pension, and a declaration is given to that bank. The bank then deducts the tax and the senior citizen need not file.

Under the Income-tax Act, 1961 this is section 194P. Under the Income-tax Act, 2025, which applies from the tax year 2026-27, the bank's deduction for a specified senior citizen is made under section 393(1) [Table: Sl. No. 8(iii)].

The figures below are for the tax year 2025-26 and are signed off. Those for the tax year 2026-27 are provisional and carry forward 2025-26.

First, is a return required at all?

Before looking at the special exemption, check the ordinary rules. A return is required if your gross total income is above the basic exemption limit for your age:

A return can also be required for other reasons. In TaxCare's rules, TDS and TCS together of ₹50,000 or more make a return required for a senior or super senior citizen (₹25,000 for others).

See who must file an income tax return.

The exemption for specified senior citizens

The exemption works by shifting the compliance to the bank. The department lists these conditions:

1. Age. 75 years or above.
2. Residence. Resident in the tax year.
3. Income. Pension income and interest income only, with the interest earned from the same specified bank in which the pension is received.
4. Declaration. The senior citizen gives a declaration to that bank.
5. Bank. A specified bank notified by the Central Government.
6. Tax. The bank deducts the tax after considering the Chapter VI-A deductions and the section 87A rebate.

Once the specified bank has deducted the tax, no return needs to be filed.

Things that bring the exemption to an end

The exemption covers pension and interest from the one specified bank only. If you have any other income, the ordinary rules apply, and you may need to file. Common examples include:

• Rent from a house.
• Capital gains on shares or mutual funds.
• Interest from several banks, post office or deposits.
• Dividends.
• Foreign assets or foreign income.

TaxCare's simple return form (ITR-1) is not open if you have foreign assets, multiple houses, unlisted shares or capital gains above its limit. See which ITR form should I file.

When it still helps to file

Even if you are exempt, consider filing a return to:

• Claim a refund of tax that was deducted when your tax was lower than the deduction.
• Build an income record for a visa, loan or other proof.
• Keep your records clean, since the department already holds information about you in your AIS.

If you are a senior citizen who files, interest on savings is deductible under section 80TTB up to ₹50,000 in the old regime, and the health insurance limit under 80D is ₹50,000 for self and family if a senior citizen is covered.

Refund and 15H or 15G style forms

Some seniors give declarations to the bank to stop TDS on interest where their tax is nil. That is a separate matter from the filing exemption, and it needs a return if you want a refund of tax deducted. Under the Income-tax Act, 1961 these are Forms 15G and 15H; Form 15H is the one a resident aged 60 or more gives the bank. Under the Income Tax Rules, 2026, these declarations become Form 121.

A checklist

1. Add all your income for the tax year: pension, interest from every source, rent, gains.
2. Compare it with the basic exemption limit for your age.
3. Check TDS and TCS against ₹50,000.
4. Check your AIS and Form 26AS (or Form 168) for income of specified senior citizens or other rows.
5. If you rely on the specified senior citizen exemption, confirm every condition above with a Tax Expert.
6. If in doubt, file. A return that was not required costs only a little time, while a required return that was missed can bring a late fee, interest and a notice.

How TaxCare helps

TaxCare fetches your AIS and Form 26AS or Form 168 and tells you whether your figures cross the filing thresholds for your age. You can add your parents' PANs to your account and prepare their returns, with their OTP. A Tax Expert can help decide whether an exemption applies. See Tax Experts, pricing and Form 26AS vs Form 168.

This guide gives general information and is not professional tax advice.