Pensioners whether receiving retirement benefits or family pension, must comply with income tax regulations just like salaried individuals. Informed taxpayers and professionals like Chartered Accountants (CAs) must understand how a pensioner can file ITR, especially when additional income from bank interest is involved.
This guide from ApkiReturn.com helps navigate the right forms, deductions, and filing process for AY 2024–25, backed by the latest tax rules and expert insights.
Who Must File ITR?
- Pensioners (retired or family pension) with total income exceeding exemption limit
- Individuals who want to claim a TDS refund
- Those with bank/post office interest, even if no TDS is deducted
- Pensioners choosing old vs new tax regime
- Family pension recipients eligible for ₹25,000 standard deduction (FY 2024–25)
Quick Comparison: ITR Form for Pensioners
| Criteria | ITR-1 (Sahaj) | ITR-2 |
| Total Income ≤ ₹50 lakh | Allowed | Allowed |
| Pension + bank interest only | Ideal | Also valid |
| Capital gains / foreign income | Not allowed | Required |
| More than one house property | Not allowed | Required |
| Family pension | Treated as “Income from Other Sources” | Same treatment |
Tip: For 90% of pensioners with simple income, ITR-1 is sufficient.
Tax Slabs for AY 2024–25 – Old vs New Regime
| Age Group | Old Regime Exemption Limit | New Regime (Standard for all) |
| Below 60 | ₹2.5 lakh | ₹3 lakh |
| 60–80 (Senior) | ₹3 lakh | ₹3 lakh |
| Above 80 (Very Senior) | ₹5 lakh | ₹3 lakh |
Under both regimes, rebate under Section 87A is available for income up to ₹7 lakh in new regime and ₹5 lakh in old.
Step-by-Step: How to File ITR for Pensioners
A. Collect These Documents
- PAN, Aadhaar, and bank details
- Pension slips or Form‑16A (TDS on pension)
- Form 26AS & AIS for interest income and TDS
- Medical insurance proofs (Sec 80D), donation receipts (80G), etc.
B. Calculate Total Income
- Pension income under “Salary” section
- Apply ₹50,000 standard deduction (₹75,000 in new regime)
- Bank interest: Report full interest (not just TDS) under “Other Sources”
- Family pension: Deduction of ₹25,000 from gross (new for FY 2024–25)
C. Check TDS vs Tax Liability
- Use Form 26AS to check TDS from bank/pension
- If tax payable > TDS, compute self-assessment tax
- Pay remaining tax before submitting ITR to avoid interest
D. Select and Fill Correct ITR
- Visit https://www.incometax.gov.in
- Use ‘File Return’ → Select AY 2024–25 → Choose ITR-1 or ITR-2
- Fill:
- Basic details
- Income from salary/pension
- Bank interest in Schedule OS
- Deductions (80C, 80D, etc.)
- Taxes paid (TDS, advance tax)
Validate → Preview → Submit → e-Verify within 30 days.
FAQs – ITR Filing for Pensioners
Q1. Can I file ITR without Form 16?
Yes. Use pension slips, Form 26AS, and AIS for reporting income and tax deducted.
Q2. Do I need to declare interest income even if there’s no TDS?
Yes. All bank interest must be disclosed under “Income from Other Sources.”
Q3. What if a pensioner uses the wrong ITR form?
The return will be treated as defective (under Sec 139(9)) and needs to be revised within the notice period.
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