Form 125 for Senior Citizens aged 75+ to avoid filing income tax returns

Form 125 under the Income-tax Act, 2025 enables specified senior citizens aged 75 years or above, having only pension and interest income from a specified bank, to claim exemption from filing income tax returns. By submitting this declaration annually to the bank, the responsibility of computing total income and deducting tax shifts to the specified bank, which deducts TDS after considering applicable deductions and rebates. The form is mandatory for availing this benefit and must be submitted each tax year, either physically or through electronic banking channels. However, it does not exempt the taxpayer from TDS liability. If the individual earns any additional income, the declaration must be withdrawn, and regular return filing becomes mandatory. The framework simplifies compliance for elderly taxpayers by reducing procedural burden while ensuring tax collection through banks, thereby balancing convenience with regulatory oversight and accuracy in tax administration.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 125: Declaration to be furnished by Specified Senior Citizen for deduction of tax under Section 393(1)) [Table: Sl. No. 8(iii)]

Form No. 125 (Earlier Form No. 12BBA)

Declaration by Specified Senior Citizen u/s 393(1) [Table: Sl. No. 8(iii)] of the Income-tax Act, 2025

Q1. What is Form No. 125 and its use?

Ans: Form No. 125 is a declaration furnished by a Specified Senior Citizen under section 393(1) [Table: Sl. No. 8(iii)] of the Income-tax Act, 2025, in respect of Pension Income and Interest received or receivable through a specified bank. TDS is accordingly deducted by the Specified Bank. Such declaration in Form No. 125 does not include any other income such as rent, commission, capital gains etc.

Q2. Who is a “Specified Senior Citizen”?

Ans: A “Specified Senior Citizen” is a resident senior citizen who is 75 years of age or older and has income limited to pension and interest only, both of which must be received through a specified bank, as per provisions of Section 402(39).

Q3. What is the purpose of filing Form No 125?

Ans: The form grants specified senior citizens exemption from filing an Income-tax Return (ITR). The specified bank handles the tax computation and deduction of tax, on their behalf.

Q4. To whom should Form No. 125 be submitted?

Ans: It must be submitted to the specified bank where the account in which pension and interest income is received or receivable is being maintained.

Q5. Is it mandatory to submit Form No. 125?

Ans: Yes, submission of Form No. 125 is mandatory if the specified senior citizen wishes to seek exemption from filing of an ITR, in accordance with provisions of Section 263(8)(b).

Q6. What is the timeline for submission of Form No. 125?

Ans: It must be submitted once a year for every Tax Year, for which exemption from filing of ITR is claimed.

Q7. Can Form No. 125 be submitted online?

Ans: Form No 125 can be submitted in paper form as well as E-filed through net banking using the facility provided by the specified bank.

Q8. Can a submitted Form No. 125 be revised or withdrawn?

Ans: Yes. If there is a change in income or details, a fresh declaration should be submitted. If the senior citizen earns any other type of income later, the declaration must be withdrawn or revised. In case of withdrawal of previously filed Form No. 125, then such specified senior citizen must file Return of Income (ITR).

Q9. Is TDS deducted even after submitting Form No. 125?

Ans: Yes. The bank will compute the total income and deduct the applicable tax after considering relevant deductions and rebates. Filing of Form No. 125 only provides exemption from filing of an ITR to a specified Senior Citizen. It does not offer any exemption from deduction of tax at source on pension and interest income.

Guidance Note on Income Tax Form 125: Declaration to be furnished by Specified Senior Citizen for deduction of tax under Section 393(1)) [Table: Sl. No. 8(iii)]

Form No. 125: Declaration to be furnished by Specified Senior Citizen under section 393(1) [Table Sl. No. 8(iii)1

Purpose:

Form No. 125 is furnished by a Specified Senior Citizen to the specified bank in which he/she is receiving the pension income and the interest income.

Who Should File & to whom:

Only a Specified Senior Citizen can file form no. 125 to the specified bank where the account in which pension and interest income is received or receivable is being maintained.

Who is a Specified Senior Citizen?

The definition of Specified Senior Citizen as per section 402(39) of the Income-tax Act, 2025 is as below:

A Resident individual

(a) who is of the age of seventy-five years or more at any time during the tax year;

(b) who is having pension income and no other income except the interest received or receivable from any account maintained by such individual in the same specified bank in which he is receiving his pension income; and

(c) has furnished a declaration to the specified bank containing particulars, in such form and verified in such manner as may be prescribed;

Usefulness for deductor/Specified Bank:

The information furnished by the Specified Senior Citizen in Form No. 125 is used by the deductor in submitting to the department through Annexure III of Form No. 138.

Usefulness for the Taxpayer/Specified Senior Citizen:

The filing of the Form No. 125 by the Specified Senior Citizen exempts him/her from the compliance required under section 263 of the Income-tax Act, 2025 i.e. that of filing income tax return for the Tax Year in which he/she was a specified senior citizen.

Frequency & Due Dates:

It is expected that the form is submitted at the earliest possible so that tax liability could be computed and tax could be deducted accordingly. The form is to be filed once every financial year.

Structure of Form No. 125:

1. Details of the Specified Senior Citizen: Name, Address, PAN, Date of Birth, Tax Year, Contact Details, Name of the Specified Bank, Name of Employer from which pension is drawn, Pension Payment Order (PPO) Number, bank account number maintained with the bank branch and whether opting for new tax regime.

2. Declaration by the Specified Senior Citizen: Certification that particulars are correct
and complete.

Brief Note on Qualitative Changes Made:

• Bank Account Details maintained by the Specified Senior Citizen with the Specified Bank is added as a column for ready reference by the bank.
• Nature of the bank account whether individual or joint account has also been captured.

Common Changes Made Across Forms:

1. Tax payer (specified senior citizen) details such as Name, Designation, Address, PAN etc. have been standardized.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Changes related to Sections, Clauses and Schedules have been aligned as per the Income-tax Act, 2025.

4. Currency symbol “Rs.” has been replaced with “Z”.