Income tax return 2026: Who can avoid ITR filing? Form 125 for senior citizens explained

In a major relief for senior citizens, the Income-tax provisions applicable from April 2026 simplify compliance for eligible individuals aged 75 years and above.

Form No. 125 is a declaration furnished by a Specified Senior Citizen under section 393(1) of the Income-tax Act, 2025, in respect of pension income and interest income received or receivable through a specified bank. Based on such declaration, tax is deducted at source (TDS) by the specified bank. The declaration does not cover any other income such as rent, commission, or capital gains.

Who is a “Specified Senior Citizen”?

A “Specified Senior Citizen” means a resident individual who is 75 years of age or older and whose income consists only of pension and interest, both of which are received or receivable through a specified bank, as per section 402(39).

What is the purpose of filing Form No. 125?

To whom should Form No. 125 be submitted?

Form No. 125 is required to be furnished to the specified bank where the account, in which pension and interest income is received or receivable, is maintained.

Is it mandatory to submit Form No. 125?

Yes. Submission of Form No. 125 is mandatory for a specified senior citizen who intends to avail exemption from filing of return of income, in accordance with the provisions of section 263(8)(b).

What is the timeline for submission of Form No. 125?

Form No. 125 is required to be furnished once every tax year for which exemption from filing of return of income is claimed.

Can Form No. 125 be submitted online?

Yes. Form No. 125 may be furnished either in paper form or electronically through net banking facilities provided by the specified bank.

Can a submitted Form No. 125 be revised or withdrawn?

Yes. In case of any change in income or particulars, a fresh declaration is required to be furnished. If the senior citizen subsequently earns income other than pension and interest, the declaration must be withdrawn or revised. Upon withdrawal, the individual shall be required to file a return of income.

Is TDS deducted even after submitting Form No. 125?

Yes. The specified bank shall compute total income and deduct tax at source after allowing applicable deductions and rebates. Submission of Form No. 125 provides exemption only from filing of return of income and does not exempt the individual from deduction of tax at source.

Disclaimer: The information contained in this article is for informational purposes only and does not represent investment advice from Upstox. Investment decisions should be made based on independent research or consultation with a registered financial advisor. Past performance is not indicative of future results.