Turning 60 anytime during 2026-27? You can now avail full senior citizen tax benefits under new rule. Check how to do it here. (AI generated image)
Retirees and pensioners in Gujarat have a useful clarification from income tax experts this year. If you turn 60 at any time during the financial year 2026-27, you can claim senior citizen benefits for the entire year while submitting the new Form 121 to avoid Tax Deducted at Source (TDS) on your interest income and other specified earnings.
The old Forms 15G and 15H have been replaced by a single new Form 121 from April 1 under the Income Tax Act, 2025. Tax experts say this change brings both simplification and some important new rules.
International tax expert Mukesh Patel told TOI that a resident individual who turns 60 at any point during the financial year will be treated as a senior citizen for the entire year for the purpose of filing Form 121.
This means even if your 60th birthday falls in December or March, you can still declare yourself as a senior citizen from the beginning of the financial year, provided your estimated total tax liability for the year is nil.
Under the new tax regime, senior citizens can have nil tax liability on income up to ₹12 lakh due to available rebates. This limit goes up to ₹12.75 lakh if standard deduction on salary or pension income applies. The form is particularly helpful for those living on bank interest, post-office deposits, or pension income.
A new requirement has been added: Taxpayers must now disclose details of their income tax returns for the previous two years, including acknowledgement numbers and reported income.
Experts recommend checking first whether TDS would actually apply to your income. If your bank interest is below the threshold, filing the form may not be necessary. For those who need to file, submitting it early in April is advisable so that banks and other deductors do not start deducting TDS from the beginning of the year.
The new rule is expected to benefit a large number of senior citizens and those about to turn 60 in Gujarat and across the country by allowing them to avail the full benefit without waiting for their birthday.
(With TOI inputs)
The old Forms 15G and 15H have been replaced by a single new Form 121 from April 1 under the Income Tax Act, 2025. Tax experts say this change brings both simplification and some important new rules.
Tax benefits for those turning 60
International tax expert Mukesh Patel told TOI that a resident individual who turns 60 at any point during the financial year will be treated as a senior citizen for the entire year for the purpose of filing Form 121.This means even if your 60th birthday falls in December or March, you can still declare yourself as a senior citizen from the beginning of the financial year, provided your estimated total tax liability for the year is nil.
Under the new tax regime, senior citizens can have nil tax liability on income up to ₹12 lakh due to available rebates. This limit goes up to ₹12.75 lakh if standard deduction on salary or pension income applies. The form is particularly helpful for those living on bank interest, post-office deposits, or pension income.
What Form 121 covers and what it doesn’t
Form 121 can be used to avoid TDS on:- Interest on securities, bank and post-office deposits
- Dividends
- Rental income
- Insurance commission and related payments
- Withdrawals from recognised provident funds
A new requirement has been added: Taxpayers must now disclose details of their income tax returns for the previous two years, including acknowledgement numbers and reported income.
Expert advice on tax return filing
Mukesh Patel cautioned that while Form 121 looks simpler, taxpayers must be careful. Eligibility still depends on estimated income, choice of tax regime, and whether there are any capital gains taxed at special rates (which may not qualify for the rebate).Experts recommend checking first whether TDS would actually apply to your income. If your bank interest is below the threshold, filing the form may not be necessary. For those who need to file, submitting it early in April is advisable so that banks and other deductors do not start deducting TDS from the beginning of the year.
The new rule is expected to benefit a large number of senior citizens and those about to turn 60 in Gujarat and across the country by allowing them to avail the full benefit without waiting for their birthday.
(With TOI inputs)
