ITR Filing 2025:
These individuals are exempt from paying income tax. Should they file ITR?

May 28, 2025

With ITR Forms 1 to 7 now notified by the Central Board of Direct Taxes (CBDT), taxpayers are eagerly waiting for the government to release ITR utilities for e-filing.

As the new financial year began on April 1, the Income Tax Department kicked off the annual Income Tax Return (ITR) filing season for Assessment Year (AY) 2025–26. With ITR Forms 1 to 7 now notified by the Central Board of Direct Taxes (CBDT), taxpayers are eagerly waiting for the government to release ITR utilities for e-filing.

However, not everyone needs to file an ITR. Senior citizens, especially those aged 75 years or above, may be exempt from filing returns if they meet specific conditions under Section 194P of the Income Tax Act, 1961.

According to the rules, a senior citizen is defined as a resident individual aged 60 years or above but below 80, while a super senior citizen is one aged 80 or above.

Under Section 194P, individuals aged 75 or more are not required to file an income tax return if:

They are residents in the previous year.

They have only pension income and interest income from the same bank where their pension is received.

They file a declaration with the specified bank, which will then calculate tax liability.

The bank, as notified by the government, deducts TDS after considering all eligible deductions and rebates.

Once the tax is deducted by the bank, these senior citizens are relieved from the obligation of filing ITR.

This move, first introduced to reduce compliance burden on elderly taxpayers, continues to benefit thousands of pensioners by simplifying tax formalities for those with straightforward income sources.

[The Financial Express]