ITR-1, ITR-2, ITR-3 or ITR-4: Which form should senior citizens use? Who can skip filing returns?

The Income Tax Department has started a phased rollout of online filing facilities and Excel-based utilities for Assessment Year (AY) 2026-27 on its e-filing portal.

The filing options for ITR-1 and ITR-4 were made available on May 15. Following whic, the online filing facility for ITR-2 was activated on May 27.

As taxpayers begin filing returns for FY 2025-26, one common challenge—particularly for senior citizens—is choosing the correct ITR form. Here's look at how to choose the right form to avoid errors, notices, or delays in processing

(Notably, taxpayers who need to file ITR-3 will have to wait longer, as the form has not been activated yet.)

ITR-1 vs ITR-2 vs ITR-3 vs ITR-4: How should senior citizens choose the right form

For Assessment Year 2026-27, your age is not the deciding factor choosing the correct ITR form, rather it depend on your sources of income are.

• ITR-1 (Sahaj) is for people having a pension, up to two house properties, and interest income below ₹50 lakh, Upstox article explains.
• If you have earned capital gains or hold multiple house properties, you may need to file ITR-2.
• In case, you have direct income from a business or any other profession, you need to file ITR-3.
• ITR-4 (Sugam) is meant for presumptive taxation case

Who can avoid filing ITR?

Super senior citizens (people above 75 years) are entitled to certain additional tax benefits and exemptions. With the introduction and expansion of Form 125, they can now avoid filing an ITR entirely.

What is Form No. 125?

Form 125 (formerly Form 12BBA) is a mandatory declaration under the Income-tax Act, 2025, for “Specified Senior Citizens” to exempt them from filing Income Tax Returns (ITR).

Who can use Form No. 125?

Only individuals aged 75 years or above who are residents of India can avail of this facility.

Also, it should be noted that this is intended only for those with a pension or interest income from the same specified bank where the declaration is filed.

Any additional source of income—such as rental income, capital gains or business income—automatically disqualifies the taxpayer from using this mechanism.

Tax slabs: New tax regime vs old tax regime

Senior citizens aged 60 and above get a bigger relief under the old tax regime, as income tax applies only when their annual income exceeds ₹3 lakh, compared to ₹2.5 lakh for regular salaried taxpayers. For super senior citizens aged 80 years and above, the basic exemption limit is even higher at ₹5 lakh per year.

However, under the new tax regime, there is no separate benefit for senior citizens, as both seniors and regular taxpayers have the same basic exemption limit of ₹4 lakh annually.