Quick Summary
Yes, you are correct if your monthly pension income is up to ₹39,500 = ₹4,74,000 annually then you need not have to file an income tax return.
Under the New Tax Regime (from AY 2026-27), pensioners get:
Standard Deduction = ₹75,000
Since the taxable income after deduction is:
Rs.4,74,000 – Rs.75,000 = ₹3,99,000 (< ₹4 lakh)
The person do not have to pay tax.
Reason
If you receive only pension income and taxable income after deductions is below Rs.4 lakh then,
ITR filing is NOT mandatory.
Exceptions
ITR Filing Not Mandatory If Income Exceeds Rs.4 Lakh
- The person must be 75 years or more and a Resident of India. Such a person is called a Specified Senior Citizen.
- Income must be only from Pension income and Interest from the same bank where pension comes.
- Senior citizen must submit Form 12BBA to that bank by providing details of pension + interest income
- That bank will calculate the tax and deduct TDS u/s 194P.
- If bank deducts correct tax, then ITR filing is NOT required, even if income is above ₹4 lakh.
Conditions - You May Need to File ITR If Income Exceeds Rs.4 Lakh
Even if your pension is less than Rs.4 lakh you must file ITR if any of the following conditions apply:
- Deposited Rs.50 lakh or more in any Savings Bank Account.
- Total deposits + withdrawals in any current account is Rs.1 crore or more in a year.
- Credit Card expenditure above Rs.2 lakh.
- Electricity bill above Rs.1 lakh in a year.
- Foreign travel expense above Rs.2 lakh (self or others).
- TDS/TCS of Rs.50,000 or more.
- Business turnover more than Rs.60 lakh, even if you made very little profit or loss
- Professional receipts above Rs.10 lakh.
- Foreign income or foreign asset — bank, shares, investment, etc.
- If you want to carry forward losses such as business loss, capital loss, F&O loss, speculation loss, house property loss to future years, you must file ITR.
- Person paying rent above Rs.50,000 per month (TDS u/s 194-IB — TDS deducted as tenant).
- Person having beneficial interest in any asset located outside India.
- Claiming refund — claim income tax refund, TDS refund, interest refund, etc.
This means pensioners must be mindful of their overall financial activity when considering ITR filing obligations, not just pension income alone.
If your monthly pension income is up to ₹39,500, which equates to ₹4,74,000 annually, you are generally not required to file an Income Tax Return (ITR).
Under the New Tax Regime, pensioners receive a standard deduction of ₹75,000. This reduces the taxable income, meaning an annual pension of ₹4,74,000 becomes taxable at ₹3,99,000, which is below the ₹4 lakh threshold where tax payment is not required.
Yes, even if your pension income is below ₹4 lakh, you may need to file an ITR if you have made significant bank deposits (₹50 lakh+ in savings, ₹1 crore+ in current accounts), spent over ₹2 lakh on foreign travel, or have foreign income or assets.
A Specified Senior Citizen is an Indian resident aged 75 years or more. If their income is solely from pension and interest from the same bank, and they submit Form 12BBA, the bank will calculate and deduct TDS, potentially exempting them from filing an ITR even if their income exceeds ₹4 lakh.
Filing an ITR is mandatory if you have deposited ₹50 lakh or more in savings accounts, have current account transactions of ₹1 crore or more, have credit card expenses over ₹2 lakh, electricity bills over ₹1 lakh, foreign travel expenses over ₹2 lakh, TDS/TCS of ₹50,000 or more, or have foreign income or assets.
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