ITR filing
After retirement, many people feel that they no longer need to file Income Tax Return (ITR) because their regular salary has stopped. But if the income of a pensioner is more than the prescribed limit, then it becomes necessary to file ITR. The Income Tax Department considers pension as salary income, hence tax rules apply on it.
Online filing of ITR-1 and ITR-4 has started for assessment year 2026-27. The last date for filing ITR for pensioners has been fixed as 31 July 2026. If someone does not file the return by this date, then he can file ITR with late fees till 31 December 2026.
Pensioners get these facilities
Pensioners get many benefits by filing ITR. This makes it easier to claim tax refunds, maintain accurate records of bank interest and pension income and helps in providing documentation for future needs like loans or visas. The government has given many important exemptions to senior citizens to save tax. The biggest relief is available in the form of standard deduction. Senior citizens receiving pension can avail standard deduction, which reduces their taxable income.
Apart from this, under Section 80TTB of the Income Tax Act, senior citizens can claim a deduction of up to Rs 50,000 on interest received from banks, post offices and fixed deposits. This reduces the tax burden on interest income after retirement. Tax relief is also available on medical expenses. Under Section 80D, senior citizens can take a deduction of up to Rs 50 thousand on health insurance premium. At the same time, tax exemption of up to Rs 1 lakh can be availed under Section 80DDB on the treatment of serious diseases. This facility is considered very important in view of the increasing health expenses of the elderly.
Exemption will be available under Section 80C
Pensioners making tax saving investments can also avail benefits under Section 80C. Deduction of up to Rs 1.5 lakh is available on investments like life insurance premium, PF, NSC and home loan principal payment. If a senior citizen is repaying a home loan, he can claim deduction of up to Rs 2 lakh on home loan interest under section 24(b). This benefit is available in the old tax system.
The government has also given relief to senior citizens in the matter of advance tax. Pensioners who do not have any income from business or profession are not required to deposit advance tax. In such cases, the provision of interest under Section 234B and 234C also does not apply. It is also important for pensioners to choose the right option between the new and old tax system. For those who have more investments and deductions, the old tax system may be beneficial, while for those with less investment, the new tax system may be a better option.
Also read- Post Office MIS Scheme: Invest Rs 15 lakh once, you will get this much income every month
