Income-tax returns: Filing tax as a senior citizen? Tax slab, rebate and marginal relief — here are key things to know

Income-tax returns: The income-tax department has released excel utility of its ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam) online forms for financial year 2025-26 i.e. assessment year 2026-27 and notified all ITR forms 1-5 for this tax year (FY26 / AY27).

Notably, availability of excel utility means that you can prepare your returns offline before uploading them digitally. Taxpayers have till 31 August to file their returns by logging into the e-filing portal with your User ID and password. Notably, this deadline has been extended by a month from 31 July earlier.

Today we lay out the numbers and key things to know for senior and super senior citizens looking to file their returns.

Can senior citizens shift between old and new tax regimes?

According to the e-filing portal, eligible taxpayers can choose between old and new tax regime each tax year. New tax regime is the default. However, for business and profession taxpayers have option to withdraw old tax regime and re-entering into default tax regime only once in lifetime.

What is the income-tax slab rates for senior citizens?

Tax rates for individuals (resident or non-resident), 60 years (senior citizens) or more but less than 80 years of age anytime during the previous year are as follows:

What is I-T slab for super senior citizens?

Tax rates for individuals 80 years (super senior citizens) of age or more anytime during the previous year are as under:

What is the applicable surcharge rate?

Surcharge rate is tax calculated as a percentage of income tax already payable by high-income taxpayers, including senior and super senior citizens.

What is the applicable rebate?

Resident senior citizens are also eligible for rebate u/s 87A of ITA 1961 up to 100% of income tax subject to a maximum limit depending on tax regimes as under:

What are the conditions for marginal relief?

Marginal relief can also be claimed from surcharge in the following cases:

Are senior citizens exempt from filing taxes?

According to the e-filing portal, Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above. Conditions for exemption are:

• Senior Citizen should be of age 75 years or above
• Senior Citizen should be ‘Resident’ in the previous year
• Senior Citizen has pension income and interest income only and interest income accrued or earned from the same specified bank in which he is receiving his pension.

• The senior citizen will submit a declaration to the specified bank.
• The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under Section 87A of Income Tax Act,1961.
• Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.

Which ITR forms should senior citizens use?

Senior citizens can use ITR forms 1, 2, 3 and 4 depending on eligibility. Most will likely have to use the Sahaj form or ITR-1, which is applicable for individual resident taxpayers who earn up to ₹ 50 lakh from salary or pension, one house property, interest, family pension, dividend, agricultural income up to ₹5,000, and capital gains u/s 112A up to ₹1,25,000.

ITR-2 can be used by seniors who are not eligible for ITR-1 and not earning from profits or gains of business or profession; ITR-3 for those who cannot use ITR-1, 2 or 4 and earning under the head profits or gains of business or profession.

Further, the Sugam or ITR-4 form is for non-residents with total income up to ₹50 lakh with income from business and profession computed on a presumptive basis u/s 44AD / 44ADA / 44AE of Income Tax Act,1961 and income from — salary, pension, one house property, agricultural income up to ₹5,000, and capital gains u/s 112A up to ₹1,25,000.

Disclaimer: This story is for educational purposes only. We advise taxpayers to check with certified tax experts before making any decisions.