No ITR, No TDS Refund: A Crucial Reminder for Senior Citizens
Many senior citizens rely on interest income from their bank deposits. However, even if your total income is below the basic exemption limit, you may still need to file an Income Tax Return (ITR) to get a refund on taxes deducted at the source (TDS).
Why You Might Need to File an ITR
- TDS on Interest Income: Banks are required to deduct a 10% tax on interest from deposits that exceed ₹50,000 in a financial year. If you haven’t submitted Form 15H (a declaration that your income is below the taxable limit) or if the bank has deducted TDS despite you submitting it, you can only claim the refund by filing an ITR.
- Income Not Taxable: Even if your total income is below the basic exemption limit (₹3 lakh for senior citizens and ₹5 lakh for super senior citizens aged 80 or above), filing an ITR is the only way to get back the TDS that has been deducted.
Special Provisions for Senior Citizens over 75
An exemption from filing an ITR exists for senior citizens aged 75 and above, but it comes with strict conditions:
- Your only sources of income must be a pension and interest from the same bank.
- You must submit a declaration to the bank, which then becomes responsible for tax deduction after considering all applicable deductions and rebates.
If you have interest income from multiple banks, this exemption does not apply, and you must follow the regular ITR filing procedure to claim any refund.
ITR Filing Deadlines for FY 2024-25 (AY 2025-26)
The original deadline for filing ITR for non-audit cases was July 31, 2025. However, the government has extended this date. The new last date to file ITR for the financial year 2024-25 without paying a penalty is September 15, 2025.