1 day ago

Senior Citizens’ TDS Does Not Automatically Replace ITR Filing

Senior citizens tax myth: Why bank TDS on interest income doesn’t mean you can skip filing ITR · livemint.com

A bank taking tax from your interest does not always mean you can skip filing an ITR.

Tax payment and tax-return filing are separate responsibilities.

The income limit for filing depends on the tax regime and, in some cases, the person’s age.

A special rule can help some resident senior citizens aged 75 or older.

Their income must only be pension and interest from the same specified bank.

They must also submit Form No.

125 to that bank.

The bank then calculates the tax and deducts it when necessary.

If interest comes from another bank, the special exemption may not apply.

Other income can also mean the person must follow the normal ITR rules.

Key facts

Old-regime exemption limits: ₹2.5 lakh for individuals below 60, ₹3 lakh for resident senior citizens aged 60 to 80, and ₹5 lakh for resident super senior citizens aged 80 or above.
New-regime exemption limit: ₹4 lakh regardless of age or residential status.
Special age threshold: The conditional exemption applies to eligible resident senior citizens aged 75 or above.
Qualifying income: Pension and interest received or receivable from an account maintained with the same specified bank that pays the pension.
Required declaration: The senior citizen must submit Form No. 125 to the specified bank.
Bank responsibility: The specified bank calculates tax after applicable deductions and rebate, then deducts tax where required.
Multiple-bank interest: Interest from another bank can make the special exemption unavailable.

livemint.com · 1 day ago