ITR filing 2024: Which ITR form is recommended for senior citizens, super senior citizens for tax returns

The deadline for filing income tax approaches each day, underscoring the importance for senior and super-senior citizens to grasp the specific tax benefits available to them. Many senior citizens mistakenly believe that Tax Deducted at Source (TDS) on their income automatically relieves them from filing income tax returns. However, this is not necessarily true.

Income tax exemption clauses for senior and super senior citizens

Senior or super-senior citizen taxpayers need to understand that TDS serves as an advance payment towards their tax liability. It may not cover their entire tax obligation, especially if their total income exceeds the exemption limit or if specific deductions/exemptions have not been considered in the TDS calculation.

While Section 194P of the Income Tax Act provides an exemption from filing returns for senior citizens aged 75 years and above, this exemption is subject to specific conditions. The conditions stipulate

• The total income should not exceed ₹5 lakh and must be comprised solely of pension and interest income.
• The interest income must originate from the same bank through which they receive their pension.
• You are required to submit a declaration to the bank to claim this exemption.
• The specified bank, as notified by the Central Government, must be designated. These banks are responsible for deducting TDS from senior citizens’ income after accounting for deductions under Chapter VI-A and rebates under Section 87A of the Act.

If these conditions are not fulfilled, senior citizens with TDS deducted may still be required to file a tax return.

Which ITR form should senior citizens choose?

To help senior citizens access these benefits, the department has introduced specialized income tax return (ITR) forms designed to streamline the filing process and ensure eligibility for income tax exemptions.

The ideal ITR form for senior citizens varies based on their particular sources of income. Here’s a breakdown of the most typical scenarios:

• ITR-1 (Sahaj): This straightforward form is suitable for senior citizens whose income includes salary/pension, interest from savings accounts/fixed deposits, and rental income from a single residential property. The total income reported on this form must not exceed ₹50 lakh.
• ITR-2: The ITR-2 form is required if senior citizens’ earnings encompass capital gains from the sale of shares, property, or other assets. This form accommodates a broader spectrum of income sources than ITR-1.
• ITR-3 or ITR-4 (Sugam): These ITR forms are best for senior citizens earning business or professional income. If you earn income from a business or profession, you may need to file either of these forms, depending on the specifics of your business and whether you choose the presumptive taxation scheme. It’s advisable to seek advice from a tax consultant in this regard.

The ITR-3 form is designated for individuals who earn income from a business or profession, excluding income that falls under presumptive taxation. The ITR-4 form is intended for individuals who earn income from a business or profession that falls under presumptive taxation as per sections 44AD, 44ADA, etc.

Simplified tax requirements for senior and super senior citizens

The Income Tax Act, 1961 acknowledges the financial requirements of senior citizens and provides them with beneficial provisions to alleviate their tax burden. Moreover, the Department acknowledges the importance of ensuring accessibility in the tax filing process for senior citizens. Here’s how they have simplified it:

• Simplified ITR forms: Senior citizens with straightforward income sources may find that forms like ITR-1 or ITR-4 are more suitable. These forms are designed to be less complex and easier to navigate.
• Pre-filled information: The department automatically populates certain details in ITR forms using information obtained from banks and other sources. This streamlines the filing process for seniors, saving them time and effort.
• E-filing options: The Income Tax Department provides electronic filing options for ITRs, allowing tech-savvy seniors to conveniently file their returns from home. Alternatively, seniors unfamiliar with online filing can still opt for traditional methods such as paper filing or seeking assistance from a tax professional.

These options are aimed at simplifying the tax filing process for senior citizens and promoting their utilization of available tax benefits. If you’re a senior citizen unsure about which form to use or how to proceed with filing, seeking advice from a tax advisor can be highly beneficial.