How to File Income Tax Return for Pensioners For FY 2025-26?

Taxpayers receiving pension are required to report is under the head “Income From Salary” and pay applicable taxes as per the income tax slabs while filing ITR. The correct ITR form to be filed by pensioner depends on the various income sources of that taxpayer. 

Tax on Pension Income

Pension received after retirement can be classified into commuted and uncommuted pension. Commuted pension refers to a lump sum amount that a taxpayer may choose to receive in advance by surrendering a part of their future monthly pension. This option allows the individual to get a fixed portion of their pension upfront. On the other hand, uncommuted pension is the regular monthly pension received over time and is not converted into a lump sum. 

For example, if someone opts to receive 10% of their total pension as a lump sum for 10 years, that amount is considered commuted pension, while the remaining 90% paid monthly is the uncommuted pension.

The taxability for commuted and uncommuted pension is explained below:

*Note:

• If gratuity is received: 1/3rd of commuted pension is exempt
• If no gratuity is received: 1/2 of commuted pension is exempt

Exemption from ITR filing for Pensioners

Under Section 194P - resident senior citizens aged 75 years or more do not have to file Income Tax Returns on satisfaction of certain conditions. They are as follows:

• The senior citizen must be resident
• He should not have any income other than pension income and bank interest from that pension amount.
• He should file the declaration to the bank in this regard, using the prescribed forms.
• The banks will directly deduct TDS, and such pensioners are exempted from filing ITR.

Which ITR Should Pensioners File?

Taxpayers receiving pension are required to report it under the head “Income From Salary” and pay applicable tax on it while filing their ITR. Pensioners can file either ITR-1, ITR-2, ITR-3, or ITR-4 depending on their other income sources. 

For example, a taxpayer having only pension income should file ITR-1. Whereas, a taxpayer having pension and capital gains should file ITR-2. Similarly, if the taxpayer has penison and a business or professional income then ITR-3 or ITR-4 is applicable. 

How to File Income Tax Returns for Pensioners in India?

The last date to file Income Tax Return (ITR) for FY 2025-26 (AY 2026-27) is 31st July 2026. Follow the below mentioned steps to file ITR.

To file ITR for pensioners online, follow the steps given below:

Step 1: Log in to the Income Tax e-filing portal using your PAN, password, and captcha code.

Step 2: Start the return filing process by navigating to e-File then Income Tax Returns and File Income Tax Return and selecting the relevant Assessment Year.

Step 3: Choose the filing mode and click on Start New Filing. If you have already saved a draft return, you can select Resume Filing.

Step 4: Select your taxpayer category and ITR form. Most pensioners can file using ITR-1, provided they satisfy the eligibility conditions.

Step 5: Review the pre-filled information and verify details such as personal information, pension income, bank accounts, and TDS details reflected in Form 26AS or AIS.

Step 6: Enter income and deduction details, including pension income, interest income, and eligible deductions under Chapter VI-A, if applicable.

Step 7: Choose your preferred tax regime (old or new) and review the tax calculation generated by the portal.

Step 8: Pay any outstanding tax liability, if applicable. Once the payment is successful, return to the ITR filing page and continue with the submission process.

Step 9: Preview and validate your return to check for errors or missing information. Make corrections, if required, before submitting the return.

Step 10: Submit and verify your ITR through Aadhaar OTP, net banking, bank account EVC, or other available e-verification methods. Your return filing process is complete only after successful verification.

Due Date to File ITR for Pensioners

Pensioners filing ITR-1 and ITR-2 are required to file it within the due date of 31st July 2026. However, the due date to file ITR-3 and ITR-4 is 31st August 2026. 

Pensioners missing the initial due date can file a belated return within 31st December 2026 by paying late fees under Section 234F.