The income-tax department has released excel utility of its ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam) forms for financial year 2025-26 (assessment year 2026-27). Taxpayers have till 31 August to file their returns by logging into the e-filing portal with their User ID and password. Notably, this deadline has been extended by a month from 31 July earlier. The availability of excel utility means taxpayers can prepare their returns offline before uploading them digitally.
According to the e-filing portal, eligible taxpayers can choose between old and new tax regime each tax year. The new tax regime is the default option. However, for business and profession taxpayers, there is an option to withdraw old tax regime and re-enter into the default tax regime only once in lifetime. This flexibility allows senior citizens to optimize their tax liability based on their specific financial circumstances.
Tax rates for individuals 60 years or more but less than 80 years of age are as follows: Up to ₹3,00,000 - Nil tax. ₹3,00,001 - ₹5,00,000 - 5% above ₹3,00,000. ₹5,00,001 - ₹10,00,000 - ₹10,000 + 20% above ₹5,00,000. ₹10,00,001 - ₹20,00,000 - ₹1,10,000 + 30% above ₹10,00,000. ₹20,00,001 - ₹24,00,000 - ₹2,00,000 + 25% above ₹20,00,000. Above ₹24,00,000 - ₹3,00,000 + 30% above ₹24,00,000.
Tax rates for individuals 80 years or more of age are as follows: Up to ₹5,00,000 - Nil tax. ₹5,00,001 - ₹10,00,000 - 20% above ₹5,00,000. ₹10,00,001 - ₹50,00,000 - ₹1,00,000 + 30% above ₹10,00,000. ₹10,00,001 - ₹12,00,000 - ₹50,000 + 15% above ₹10,00,000. ₹12,00,001 - ₹15,00,000 - ₹80,000 + 20% above ₹12,00,000. ₹15,00,001 - ₹50,00,000 - ₹1,40,000 + 30% above ₹15,00,000. ₹50,00,001 - ₹100,00,000 - ₹1,40,000 + 30% above ₹15,00,000. ₹100,00,001 - ₹200,00,000 - ₹1,40,000 + 30% above ₹15,00,000. Above ₹200,00,001 - ₹1,40,000 + 30% above ₹15,00,000.
Surcharge rates apply as a percentage of income tax for high-income taxpayers, including senior and super senior citizens. For incomes up to ₹50 lakh - Nil surcharge. ₹50 lakh to ₹1 crore - 10%. ₹1-2 crore - 15%. ₹2-5 crore - 25%. Above ₹5 crore - 25%. Resident senior citizens are eligible for rebate under Section 87A of ITA 1961 up to ₹60,000 in new tax regime (taxable income not exceeding ₹12,00,000) and ₹12,500 in old tax regime (taxable income not exceeding ₹5,00,000).
According to Section 194P of the Income Tax Act, 1961, senior citizens aged 75 years and above are exempt from filing income tax returns under specific conditions. The exemption applies to residents who have pension income and interest income only and interest income accrued from the same specified bank where they receive their pension. Senior citizens must submit a declaration to the specified bank, which will be responsible for TDS deduction after considering deductions under Chapter VI-A and rebate under Section 87A of Income Tax Act, 1961.
