Filing Income Tax Returns Online for Pensioners: A Detailed Guide
- Nimisha Panda
- Jul 14, 2025
- 8 min read
Updated: Jul 17, 2025
New difficulties and opportunities arise with retirement. Given their particular financial situation, pensioners must be aware of the intricacies of the filing procedure to maximise their economic well-being and ensure regulatory compliance. Filing a pensioner's income tax return might be difficult. Calculating the pension's taxes may also need some effort and time. The purpose of this essay is to make the ITR filing process for pensioners easier in several ways. We will discuss how to submit the ITR, how different pensions are taxed, and how pensioners might reduce their tax liabilities. This information may be helpful to both new retirees and pensioners who have been handling their money for years.
Table of Contents
Tax on Pension Income
Two types of pensions are received after retirement. These are commuted and uncommuted pensions. A commutated pension is a lump sum payment that a taxpayer can choose to receive in advance by forfeiting a portion of their future pension payments. With this option, the individual might receive a fixed portion of their pension upfront. On the other hand, recurring monthly payouts that don't add up to a lump sum are known as uncommuted pensions. For instance, it is referred to as a commuted pension if an individual decides to receive 10% of their whole pension as a lump payment over ten years. The remaining 90% of their pension is given out each month and is referred to as an uncommuted pension.
The taxability of commuted and uncommuted pensions is explained in the table below:
Private-sector employees' partial exemption means:
If a gratuity gets paid, one-third of the commuted pension is not subject to taxes.
If there is no gratuity, half of the commuted pension is free.
ITR Filing Exemptions for Pensioners
Senior citizens who meet some qualifications and are 75 years of age or older are exempt from filing income tax returns under Section 194P. They are as follows:
The senior citizen needs to live there.
Other than pension income and bank interest on that pension amount, he shouldn't receive any other income.
Using the appropriate forms, he should submit the declaration to the bank in this regard.
These retirees are excluded from filing an ITR because the banks will deduct TDS immediately.
As long as they do not have any business or professional income, people over 80 can also file their returns offline (on paper) rather than online. The same deadlines apply to physical returns as well.
Summary Of Pensioner’s ITR Form
The pensioner ITR form can be a little challenging for new retirees. Here's a brief overview of the form for them:
The Personal Information portion is the first section. Your e-filing profile will automatically populate the information you supply. If necessary, you can change some of the details.
After that, you will reach the part of gross total income. You will already have information about your salary and pension income here. You must select "Family pension" from the drop-down selection for other income sources if you are unsure how to file an ITR for a family pensioner.
You must add and confirm all relevant deductions in the "Total Deductions" section that follows.
The "Tax Paid" section follows. You must validate your tax payments from the prior year there, including TDS, TCS, Self-Assessment Tax, and more.
The next step is "Total Tax Liability," where you may see an estimate of the tax you will owe depending on the data you previously entered.
Steps for Filing Income Tax Returns Online for Pensioners
Online income tax return filing can be completed by following these steps:
Step 1: Access the income tax e-filing website and log in.
Step 2: Select the "Income Tax Returns" option from the drop-down menu after navigating to the "e-File" tab.
Step 3: Select "File income tax return."
Step 4: Pick the online filing option and your assessment year. Press "Continue."
Step 5: Click "Resume Filing" if your ITR is already ready or "Start New Filing" if it isn't.
Step 6: Click "Continue" after selecting your applicant status. The drop-down option on the right side allows you to access the ITR 1 form.
Step 7: Once the page loads, review the necessary documents and select "Let's Get Started."
Step 8: Click "Continue" after checking the appropriate boxes.
Step 9: Decide which tax regime—new or old—you choose to adhere to.
Step 10: Click "Continue" to proceed to the next page after reviewing and editing the section data.
Step 11: Click "Proceed" after entering your income and deduction information in the appropriate boxes.
Step 12: The screen will show your outstanding tax liability, if any. You have the option to "Pay Now" or "Pay Later".
Step 13: After the payment is processed, you will receive a confirmation message and get the option to choose your preferred bank if you opt to Pay Now.
Step 14: Choose "Back To Return Filing" by clicking on it. You can also preview your ITR here.
Step 15: Check the declaration box on the "Preview and Submit Your Return" page. Enter your TRP information if it applies, or leave it empty if it is irrelevant. After that, click "Proceed to Preview" to go over every aspect.
Step 16: After that, click "Proceed to Validation." If there are any inconsistencies in your return, go return to the appropriate section and rectify them.
Step 17: Verify that all of the information is correct before selecting "Proceed to Verification."
Step 18: You can choose "e-Verify Now," "e-Verify Later," or "Verify via ITR-V" on the "Complete your Verification" page. Selecting "e-Verify Now" and clicking "Continue" is advised.
Step 19: You will receive a confirmation message confirming the successful completion of your ITR file and verification.
Requirements for the ITR for Pensioners
ITR Type
All individuals who receive a salary file Income Tax Form 1. Since a pension is a form of compensation obtained following a specific amount of time spent working for the company, it gets treated as salary income for tax purposes. Like pay, a retired person's ITR will be ITR 1-Sahaj.
Documents Required
To file an ITR-1, you must have the following documents:
Both Form 16 and Form 16A cover all taxes, bifurcations, and salaries withheld for the fiscal year. The human resources department of the corporation presents this at the end of the year.
The statement that displays the amount of TDS deducted and details about TCS is 26 AS (For Documented Income Verification). This document is optional and is used to verify the TDS deduction on the salary. After logging in, you can download it from the "Services" tab of the income-tax portal.
To claim a deduction, you will need to provide your PAN number along with additional data regarding the date and amount of the payment. Insurance payouts, donation receipts, and investments in mutual funds.
Head of Income
Pension income gets reported under the "Income From Salary" head of income. Choosing a salary head for seniors when they file their income tax returns.
Standard Deduction
Up to Rs. 50,000 in standard deductions are available to pensioners over 60. When filing an ITR for older citizens, this gets claimed. Employees under 60 years old are eligible to deduct Rs. 40,000 from their total salary income. When filing a pensioner ITR Form, a deduction of Rs. 15,000 is permitted for a family pension in any appropriate circumstances.
Conclusion
As a pensioner, handling taxes can be a doable undertaking. If you are familiar with the pension requirements, know which ITR form to use, and maximise the benefits of the various exemptions and deductions, you will be able to handle this situation with ease. It will lower your responsibilities and help you manage your tax returns more effectively. For a seamless and stress-free financial transition after retirement, it is prudent to remain aware and make plans.
FAQ
Q1. Is tax filing mandatory for pensioners?
Pensions are taxable under head salary on your income tax return. Pension recipients must submit an income tax return because an uncommuted pension is regarded as income under the Income Tax Act of 1961. To claim TDS on a pension, an ITR must filed. According to Section 194P of the Income Tax Act of 1961, individuals 75 years of age and older are not eligible to file income tax returns. Seniors must be at least 75 years old to be eligible for this exemption.
Q2. Do I have to file ITR as a government pensioner?
Since government-provided commuted pensions are exempt, you can file a nil ITR if you get one. If you receive an uncommuted pension, you must file an ITR 1.
Q3. How should family pensioners file their ITR?
To file their income tax return, family pensioners should choose "Family Pension" from the list of other income sources in the drop-down box located in the Gross Total Income section of ITR Form 1.
Q4. Can pensioners file their income tax returns online?
Yes, pensioners can use the e-filing portal of the Income Tax Department or other approved e-filing websites to submit their income tax returns online.
Q5. Is standard deduction applicable on pension income?
Since pensions qualify as income under the head salary, the old tax regime's standard deduction of Rs. 50,000 and the new tax regime's standard deduction of Rs. 75,000 apply.
Q6. Where can I declare a family pension in my ITR?
Reporting a family pension under income from other sources is feasible. Under Section 57, such income is allowed to get deducted up to Rs. 15,000 or ⅓ of the retirement savings, whichever is less.
Q7. Which ITR form is applicable for pensioners?
ITR-1 must filed by pensioners whose total income is less than Rs 50 lakhs (Sahaj). It applies to family pensioners also. Pensioners who receive income from pensions or salaries, owned property or a home, or other sources are subject to ITR-2. Pensioners with capital gains can also use this ITR form. A pensioner must submit an ITR-3 or ITR-4 if they have income from a business or profession.
Q8. How do pensioners verify their income tax returns online?
After filing their ITR, pensioners can use the "e-Verify Now" option to check their income tax return online. This approach offers prompt submission confirmation and is safe and instantaneous.
Q9. How much is the exemption amount for pensioners?
Under the previous regime, your tax slab starts at five lakhs if you are over 80, but your taxable slab starts at three lakhs if you are over 60 and under 80.
Q10. How much time do pensioners get for their verification?
Everyone has the same 30-day window to confirm their ITR e-filing.
Q11. Do senior citizens have to pay advance tax?
Senior citizens over 60 who do not have any company or professional income are exempt from paying advance taxes.
Q12. How to calculate income tax for pensioners?
Salary income gets taxed like pension income. Pensioners can compute their taxes according to the relevant tax slabs after claiming deductions under sections such as 80C, 80D, and 80TTB. For speedy computation, they can also utilize an income tax calculator.
Q13. Can pensioners choose between different tax regimes when filing their ITR?
Pensioners can file their ITR under either the old or the new tax scheme. Selecting the regime that offers the most benefits for a particular set of circumstances is crucial since it affects tax obligations and deductions.
Q14. What are the consequences of not filing the ITR by the deadline?
Depending on the amount of tax owed and the filing delay, late fees, and possible penalties may be incurred for failing to file the ITR by the deadline. For pensioners to avoid these extra fees, they must meet some deadlines.
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