How to File ITR for Pensioners: Forms, Deductions, and Steps

A pensioner files the same return as a salaried taxpayer, because pension is salary income. The form is ITR-1 for assessment year (AY) 2026-27, which covers financial year (FY) 2025-26.

• Standard deduction: Rs. 75,000 in the new regime and Rs. 50,000 in the old regime
• Family pension deduction: Rs. 25,000 in the new regime and Rs. 15,000 in the old regime, with no standard deduction
• Section 80TTB: Rs. 50,000 on deposit interest, in the old regime only
• Filing exemption: age 75 or older, with only pension and interest from the same bank

• Dates for AY 2026-27: 31 July 2026 on time, and 31 December 2026 for a belated return

  
  

Compare both regimes with your own figures before you file. Keep Form 16 from your pension bank and your interest certificates, because Bajaj Finance reviews returns for the last 2 years when you apply for a home loan.

Yes, if your income before deductions is above the basic exemption limit. A nil tax bill does not remove the duty to file, because the rule looks at income before deductions and not at the tax payable.

Your pension bank deducts tax deducted at source (TDS) under Section 192, as an employer does for salary. Form 16 from the bank shows the amount. An ITR for pensioners reports the pension, the interest and the tax already paid, and it claims any refund.

One group is exempt. Residents aged 75 or older can skip the return under Section 194P, as a later section explains.

The on-time date for AY 2026-27 was 31 July 2026, and it has passed. A belated return stays open until 31 December 2026, with a fee under Section 234F.

Interest under Section 234A applies to any tax that you still owe. Pay the balance before you file the belated return.

Monthly pension is taxed as salary, and family pension is taxed as income from other sources. This split decides which deduction you get.

Family pension gets no standard deduction. The family pension deduction sits under Section 57(iia).

Most pensioners file ITR-1, called Sahaj. An ITR for pensioners uses ITR-1 when income comes only from pension, interest and up to 2 house properties. All 6 conditions below must hold for AY 2026-27.

A pensioner with capital gains above Rs. 1.25 lakh or a foreign asset files ITR-2. The guide to the ITR-1 form explains each limit.

The new regime suits a pensioner whose income is mostly pension and interest, because the rebate makes the tax nil up to a gross income of Rs. 12.75 lakh. The old regime wins only when deductions are large.
 

Gross income of Rs. 12.75 lakh less the Rs. 75,000 standard deduction leaves Rs. 12 lakh, so the new regime already gives nil tax up to that point. The old regime cannot save more below it. Above it, compare both regimes with your own figures.

Deposit interest is taxed as income from other sources at your slab rate, whether or not the bank deducts tax. The old regime lets you deduct Rs. 50,000 of it under Section 80TTB.

Section 80TTB covers interest on savings accounts, term deposits, post office savings and co-operative bank deposits. The new regime does not allow it.

The bank deducts TDS only when your interest at that bank crosses Rs. 1 lakh in a year. The Union Budget of 1 February 2025 doubled this limit for senior citizens from Rs. 50,000, from 1 April 2025, according to Business Standard. Submit Form 15H to the bank if your total tax is nil. The guide to Form 15G and Form 15H explains the forms.

An ITR for pensioners is not required if all 4 conditions hold. The exemption is not automatic, because you must submit a declaration to the bank.

The bank then computes your tax after the basic exemption, the standard deduction and the Section 80TTB deduction. It deducts that tax, and you file nothing. Rent, capital gains or interest from a second bank take you outside the exemption, and you then file ITR-1.

File an ITR for pensioners on the income tax portal in 8 steps. Each step makes sense when read aloud.

1. Collect Form 16 from the bank that pays your pension, the interest certificate from each bank, and Form 26AS with the Annual Information Statement (AIS).
2. Log in at incometax.gov.in with your Permanent Account Number (PAN). The guide to registering for ITR filing covers a first login.
3. Open e-File, then Income Tax Returns, then File Income Tax Return.
4. Choose AY 2026-27, the online mode and ITR-1.
5. Check the pre-filled pension under Salary, and enter family pension under Other Sources.
6. Enter the deposit interest and, in the old regime, claim Section 80TTB.
7. Choose your regime and read the tax payable or the refund.

8. Submit the return, then e-verify it with an Aadhaar one-time password or net banking.

   
   

If you received arrears of pension, file Form 10E first to claim Section 89 relief.

Sudha Rao, 66, is a retired teacher in Pune with a CIBIL Score of 790. Her pension is Rs. 55,000 a month, which is Rs. 6,60,000 a year. She also earns Rs. 1,40,000 of fixed deposit interest. The figures use FY 2025-26 slabs for ITR for pensioners.

Formula used: Taxable income = pension + interest − standard deduction − Section 80TTB (old regime only). Tax = slab tax × 1.04 for cess, less the Section 87A rebate.

Sudha picks the new regime and saves Rs. 52,000. She still files, because her income before deductions is Rs. 8,00,000, which is above the basic exemption limit. A return filed after 31 July 2026 carries a fee of Rs. 5,000, since her total income exceeds Rs. 5 lakh.

Yes. Bajaj Finance reviews income documents, including returns for the last 2 years, with your existing obligations and credit record. Keep your last 2 returns, the acknowledgement of each, Form 16 from your pension bank and your interest certificates in one folder.
 

Approval timelines can extend where returns and income records need clarification, and minimum income thresholds can differ by city. Check the age and income conditions in your home loan eligibility before you apply.