Relief for Pensioners: Fill Out Form 125 and Avoid Long Queues

Income Tax Form 125: The Income Tax Department has brought great news for senior citizens. According to new rules set to take effect from April 2026, individuals aged 75 years or older will no longer have to stand in queues to file their Income Tax Returns (ITR) every year. To facilitate this, the government has introduced Form Number 125, which is expected to significantly reduce the burden of paperwork.

Which Senior Citizens Are Eligible for This Special Facility?

This relief is not available to every senior citizen. The benefit can only be availed by 'Specified Senior Citizens' who are residents of India and are aged 75 years or above. The primary condition is that their sole sources of income must be their pension and interest earned from a bank. If both the pension and the interest income are received in the same 'Specified Bank' where the individual holds an account, they are eligible for this exemption. Please note: if your income is derived from other sources—such as rent, commissions, or the stock market—you will still be required to file your tax return in the standard manner.

What Are the Benefits of Filing Form 125?

The most direct benefit is that you will no longer need to calculate your tax liability yourself or make repeated visits to a Chartered Accountant (CA). Once you submit Form Number 125 to your bank, the bank itself will calculate your total income. After factoring in any applicable deductions or rebates you are entitled to, the bank will automatically deduct the tax (TDS) on your behalf. This means that while the tax will still be deducted, you will no longer be under a legal obligation to file a separate ITR form.

Where and How to Submit the Form?

You must submit this form to the specific branch of the bank where your pension is credited. The good news is that the government has made this process entirely digital and user-friendly. You can submit it in person at the bank using a paper form, or you can submit it online from the comfort of your home via net banking. You are required to fill out this form once every year so that the bank remains aware of your intention to avail of this exemption.

Will changing my details cause any issues?

If a new source of income arises for you during the financial year (for instance, if you sell a property or start a business), you must inform the bank immediately. In such a scenario, you will be required to withdraw your declaration or update it. Once the declaration has been withdrawn, you will have to file your Income Tax Return yourself, just like any other ordinary citizen.