Navigating through the world of taxes becomes increasingly important as one reaches retirement. Although pensioners may not be part of the workforce anymore, they still have tax liabilities that need annual reporting. If you are a retiree and are wondering "how to file ITR for pensioners" as per the speculated 2024 norms, this comprehensive guide will come in handy.
What is ITR?
Income Tax Return (ITR) is a form that individuals and entities file with the Income Tax Department to declare their income, expenses, and other tax-related details for a particular financial year. For pensioners, the primary source of income is usually the pension received, but other sources such as interest from savings accounts, fixed deposits, or rental income must also be included.
Who should file ITR?
As per Indian tax laws, any individual below 60 years with an annual income exceeding Rs. 2.5 lakh, senior citizens (aged 60-80) with income above Rs. 3 lakh, and super senior citizens (above 80 years) with income above Rs. 5 lakh are required to file ITR. Pensioners, depending on their age and income, need to ensure they meet these thresholds to determine their filing requirement.
Step-by-step guide to filing ITR for pensioners
Step 1: Collect required documents
Before you start the filing process, gather all necessary documents like:
- Pension certificate: Issued by your employer or pension disbursing bank.
- Form 16: If you have any other sources of income.
- Bank statements: Reflecting interest earned on savings accounts or fixed deposits.
- Investment proofs: Documents related to investments under Section 80C, 80D, etc.
- Home loan interest certificate: If you have a home loan, this document provides details of the interest paid on the loan.
Step 2: Choose the correct ITR Form
For pensioners, ITR-1 (Sahaj) is generally the appropriate form if:
- You have income from salary/pension.
- You have income from one house property (excluding cases where there is a brought forward loss or loss to be carried forward).
- You have other sources of income (excluding winnings from lottery and income from racehorses).
Step 3: Register on the income tax e-filing portal
Visit the official Income Tax e-Filing website and register if you haven’t already. You will need your PAN, Aadhaar, and a valid email ID and mobile number.
Step 4: Link Aadhaar with PAN
It is mandatory to link your Aadhaar number with your PAN. You can do this on the e-Filing portal by providing your Aadhaar number and following the verification steps.
Step 5: Fill in the ITR form
After logging in, follow these steps:
- Select the assessment year: Choose 2024-25.
- Select the ITR form: Select ITR-1 (Sahaj).
- Fill personal information: Ensure all your personal details are correctly filled.
- Income details: Enter the details of your pension, interest income, and any other income sources. If you have a home loan from Bajaj Housing Finance, include the interest paid on the loan under Section 24(b).
- Deductions and exemptions: Provide details of eligible deductions under various sections like 80C (investments in PPF, NSC, etc.), 80D (health insurance premiums), and 24(b) (home loan interest).
Step 6: Verify your return
After filling in all the details, verify the return. You can do this electronically through Aadhaar OTP, Net Banking, or by sending a signed ITR-V form to the Centralised Processing Centre (CPC) in Bengaluru.
Step 7: Submit the ITR
Once verified, submit the ITR. You will receive an acknowledgment on your registered email ID and mobile number.
Maximising tax savings
Remember it's not just pension income or rental income that could affect your tax calculations, but also income from investments including the interests from savings account, fixed deposits or post-office deposits. Apart from these, if you have a joint home loan on a rented-out property, you can also claim deductions on the repayment.
In addition, certain financial products you keep or invest in will also help. Pensioners can claim deductions under Section 80C for investments in LIC, PPF, NPS and tax saver FDs. They can also save taxes under Section 80D for paying health insurance premiums.
Filing ITR for pensioners in 2024 is a straightforward process if you follow the steps outlined in this guide. By ensuring all your documents are in order, selecting the correct ITR form, and accurately entering all income and deduction details, you can file your returns without any hassle. Additionally, leveraging financial products such as health insurance, mutual funds, and fixed deposits, can help manage your finances effectively, ensuring a secure and comfortable retirement.
