Income Tax Tips for Pensioners (Assessment Year 2019-2020)

1. The pensioner should use ITR -1

2. PANCRAD NO should be User ID

3. Create and use Password

4. He/She should select the following

a. Original/Revised Return

b. Select Bank A/C

c. Select prefill consent etc

5. Read instructions carefully

6. Select PART A General information and fill blank items

7. Then select computation of Income Tax Menu and fill items in the gross salary as follows

a. Pension is taxable and it should be included under income from salaries. Whereas Commuted Pension and Gratuity received from Government is exempted.

b. A standard Deduction upto Rs. 40,000 can be deducted from salaries

8. Family pension should be included in the heading “Income from other Sources”

9. Following Deduction is available from family pension

i. 1/3 th of Family Pension

ii. 15,000

Whichever is less

10. Income from Other Sources Should be filled in the B3 Row Interest from Savings bank Account ,Interest from Fixed Deposit ,Dividends etc are the examples of Income from Other Sources.

11. Then B4 Gross Total Income should be noticed

12. PART C DEDUCTIONS AND TAXABLE INCOME.

Following are the important deductions as far as a pensioner is concerned.

A. SEC 80 C .

LIC premium paid by the pensioner in respect of self ,spouse and son and daughter can be deducted upto Rs. 150,000. In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children.  No deduction is available in respect of premium paid in respect of policy taken in the name of any person, other than given above.

B. Sec 80 D

a. Health Insurance Premium

Following are the important points

i. Self and family (Including Senior Citizen)-Maximum Rs.50,000

ii. Parents –Maximum Rs. 25,000

iii. Parents (Senior) –Maximum-50,000

iv.Self and Family including Parents –MaximumRs. 50,000

v. Self and Family including Senior citizen Parents –Maximum Rs. 75,000

vi.Self (Senior Citizen ) and including Senior Citizen Parents –Maximum Rs. 100,000

Sec 80D

b..Medical Expenditure

Following are the important points

i. Self and family (Senior Citizen)-Maximum Rs.50,000

ii. Parents (Senior) –Maximum Rs.50,000

iii. Self and Family including Parents –Maximum Rs. 50,000

Payment through cash mode is not allowed for Sec 80 D Payments except the following preventive medical checkup

Sec 80D

c. Preventive Medical checkup

Maximum Rs. 50,000 deduction is allowed for Preventive Medical checkup

C. SEC 80TTA Income from interest on Saving bank Accounts

Maximum amount of Rs. 10,000 can be deducted income from interest on savings bank accounts of Banks and Post Offices included in the above Income from other source

D. SEC 80TTB   Interest on deposit in case of senior citizens.

Maximum interest of Rs,50,000 can be deducted by a senior citizen from interest on deposit income included in the above Income from other sources

E. Donation 80 G should be included in a separate menu

Donation to Kerala Chief Minister Draught Relief Fund can be included in Donation as 100% without limit menu.

F. SEC 80U In case of person with disability

Following are the important points

a. Self with disability –Maximum-Rs.75,000

b. Self with severe Disability –Maximum -125,000.

13. Tax Details and Tax Paid and verification Menu are to be noticed and selected for TDS selection and Refund purposes

14. PART D COMPUTATION OF TAX PAYABLE will be automatically appear in the screen and it should be noticed and taken into consideration

15. Submit the Return and E-VERIFICCATION with Aadhar OTP is the last stage of Income Tax Return filing and verification process of Assessment Year 2019-2020

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17 Comments

  1. TC Gupta says:

    Which form to use when a pensioner having 5 lacs as pensionion income.
    After retirement he is practicing as Advocate with Such income only 2.5 lacs.Where he is eligible to show 50% of such income as profit.

    Please guide

  2. M V MAHADEVAN says:

    Sec80D Preventive Medical Checkup Rs. 5000.May be paid in cash. It is inclusive in the above limit and not additional.

  3. om prakash bhatia says:

    Rebate u/s 80 TTA is not available to senior citizen as they r entitle for rebate u/s 80TTB, ITR don’t accept both rebates to senior citizens

  4. rugram says:

    It needs to be clarified that when item Sec 80TTB is availed of by a senior citizen, then Sec 80TTA is not additionally available to senior citizens. 80TTB deduction includes interest on bank/post office deposits, including on savings deposits.

  5. R.SUBRAMANIAN says:

    Standard Deduction only ₹40000 for AY2019-20.80TTA deduction not available to pensioners on the assumption that he retired at 60years and a Senior Citizen

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