Let me help you with your question: Does a retired person have to file income tax? Yes, a retired person must file an Income Tax Return (ITR) in India if their total income exceeds the exemption limit set under the Income Tax Act, 1961. Retirement does not exempt individuals from tax liability; however, retired individuals enjoy certain tax benefits and higher exemption limits based on age.
Do Retirees Have to File Income Tax?
Yes retirees should file Income tax. However, senior citizens over 75 years who exclusively receive pension and interest income from the same bank are excluded from filing an income tax return.
If total income exceeds Rs. 2.5 lakh (below 60 years), Rs. 3 lakh (60-79 years), or Rs. 5 lakh (80+ years), ITR filing is mandatory.
Earnings After Retirement:
Pension Income: Taxable under "Salaries" head.
Fixed Deposits & Savings Interest: Taxable under "Income from Other Sources".
Rental Income & Capital Gains: If a retiree owns property or invests in shares/mutual funds, tax is applicable.
If TDS is deducted from pension or FD interest, ITR filing is needed to claim refunds. Deductions available under Sections 80C (PPF, LIC), 80D (health insurance), and 80TTB (Rs. 50,000 exemption on interest income for senior citizens).
If a retired person deposits Rs. 50 lakh+ in a savings account or spends Rs. 2 lakh+ on foreign travel, ITR filing is required.
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Read more:
Which Income is Exempted from Income Tax?
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Does A Retired Person Have To File Income Tax?
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2025-03-24T19:14:53+00:00 2025-03-24T19:14:54+00:00Comment
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