Which ITR Form Should Pensioners File For AY 2026-27? Check Tax Deductions & Benefits

The Income Tax Return (ITR) filing season is here again, and many taxpayers are busy organising documents to ensure a smooth filing process. However, some people, especially pensioners, often avoid filing ITRs, assuming that retirement means they no longer have taxable income. That is not always the case. Even after retirement, pension income is generally taxable, making it important for senior citizens to file their Income Tax Returns on time.

For Assessment Year (AY) 2026-27, the Income Tax Department has prescribed multiple ITR forms for senior citizens aged above 60 years and below 80 years. Pensioners can file their returns before the deadline of July 31, 2026, depending on factors such as total income, tax regime, deductions claimed, and other financial transactions during the financial year.

Important ITR Forms For Pensioners For AY 2026-27

Choosing the correct ITR form based on the nature of income earned during the financial year is crucial to avoid errors and delays in processing. Here are the key ITR forms pensioners should know about:

1. ITR-1 (Sahaj)

Most retired salaried individuals can file ITR-1.
This form is applicable if the total income is up to Rs 50 lakh and the income is derived from:

•Salary or pension
•One house property
•Other sources such as interest income, dividends, and family pension
•Agricultural income up to Rs 5,000

2. ITR-2

ITR-2 is applicable when the income structure is more complex. Pensioners generally need to file this form if they have:

•Multiple house properties
•Capital gains
•Foreign assets or foreign income
•Income exceeding the eligibility conditions prescribed for ITR-1

3. ITR-3

ITR-3 applies to individuals or Hindu Undivided Families (HUFs) earning income from profits and gains of business or profession.

4. ITR-4 (Sugam)

ITR-4 can be filed by resident individuals, HUFs, and firms (excluding LLPs) with a total income of up to Rs 50 lakh and presumptive income from business or profession under Sections 44AD, 44ADA, or 44AE.

It also covers income from:

•Salary or pension
•One house property
•Other sources
•Agricultural income up to Rs 5,000

Key Tax Deductions Available To Pensioners

Section 80TTB

Senior citizens can claim a deduction of up to Rs 50,000 on interest earned from:
•Savings accounts
•Fixed deposits
•Post office deposits

Section 80D

Deduction on health insurance premiums:
•Up to Rs 50,000 for senior citizens
•Additional deduction available for parents who are senior citizens

Section 80DDB

Deduction for treatment of specified diseases:
•Up to Rs 1 lakh for senior citizens

Section 80C

Under the proposed Income Tax Bill, 2025, Section 80C has been restructured and renamed as Section 123.
A deduction of up to Rs 1.5 lakh can be claimed on eligible investments such as:

•Life insurance premium
•Provident Fund contributions
•National Savings Certificate (NSC)
•Principal repayment of housing loans

Section 24(b)

Deduction on housing loan interest:

• Up to Rs 2 lakh for self-occupied property under the old tax regime
• Special Benefits Available to Senior Citizens
• Relief from Advance Tax

Resident senior citizens who do not have income from business or profession are exempt from paying advance tax under Sections 234B and 234C.