New Delhi: Senior Citizens are required to choose the Income Tax Return (ITR) form depending on their source of income and total income. The Income Tax Department has a different set of ITR forms for different types of income. The tax department provides several concessions and different provisions for senior citizens above 60 years and 80 years of age.
Senior citizens are eligible for a deduction of up to Rs 3,00,000, while super senior citizens (those above 80 years of age) are entitled to get a deduction of Rs 5,00,000. The taxpayers falling in the non-senior citizens category, get an exemption limit of up to Rs 2,50,000.
Senior citizens above 75 years of age and have pension as the only source of income, are exempted from filing income tax returns. However, people under this category are required to complete a declaration through Form 12BBA and submit it to a specific bank. After the completion of this process, they can opt out of filing their income tax returns.
Individuals having a total income of less than Rs 50 lakh from salary, rental income, pension and other sources will have to file ITR-1 (also known as SAHAJ). This form cannot be used by any senior citizen who is associated as director with a company or holds equity shares at any time during the previous year. People possessing assets in their names in any foreign country or who earn income from sources outside the country cannot use this form.
If a senior citizen is earning from shares or mutual funds or property of more than one house, then he needs to select ITR-2 form. People having property outside India or income from abroad are also required to submit ITR-2. ITR-3 is for senior citizens having income from profession. Along with this, this form is also for those who do not fall under the purview of ITR-1, ITR-2 or ITR-4.
This article guides senior citizens through the process of selecting the correct Income Tax Return (ITR) form. It explains the different ITR forms (ITR-1, ITR-2, ITR-3) suitable for various income sources and highlights significant tax deductions and exemptions available to senior citizens (aged 60 and above) and super senior citizens (aged 80 and above), including the Rs 3,00,000 and Rs 5,00,000 deduction limits, respectively. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
