Form 125 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 18, 2026

Form 125 Income Tax Rules 2026 pdf download and Key points

FORM NO. 125
[See rule 208]
Declaration to be furnished by Specified Senior Citizen for deduction of tax under Section 393(1) [Table: Sl.
No. 8(iii)]

Under the new Income-tax Rules, 2026, Form No. 125 replaces the old Form 12BBA. It is governed by Section 393(1) [Table: Sl. No. 8(iii)] of the Income-tax Act, 2025, and Rule 208 of the Income-tax Rules, 2026.

Here are all the key points regarding Form No. 125:

1. Purpose of the Form Form 125 is a declaration furnished by a “Specified Senior Citizen” regarding their pension and interest income. The primary purpose of this form is to grant eligible senior citizens an exemption from filing an Income-tax Return (ITR) for the relevant tax year. By submitting this form, the specified bank takes on the responsibility of computing the total income and deducting the applicable tax on their behalf.

2. Applicability (Who is a “Specified Senior Citizen”?) The form can only be filed by a Specified Senior Citizen, defined under Section 402(39) as a resident individual who meets all of the following conditions:

They are 75 years of age or older at any time during the tax year.
They have only pension income and interest income, and both are received/receivable from the same specified bank where the pension is drawn.
They do not have any other income like rent, commission, capital gains, etc..

3. To Whom and How to File

Where to submit: The form must be submitted directly to the specified bank where the account maintaining the pension and interest income is held.
Mode of Filing: It can be submitted in paper form or electronically (e-filed) through the net banking facility provided by the specified bank.

4. Frequency and Timelines

Frequency: It must be submitted once a year for every Tax Year in which the senior citizen wishes to claim the exemption from filing an ITR.
Due Date: It is expected to be submitted at the earliest possible time during the financial year so the bank can accurately compute and deduct the tax liability.

5. Structure of the Form The form captures the following key details:

Personal Details: Name, Address, PAN, Date of Birth, Contact Details, and the relevant Tax Year.
Banking & Pension Details: Name of the Specified Bank, Name of the Employer from which the pension is drawn, Pension Payment Order (PPO) Number, and the bank account number (indicating whether it is an individual or joint account).
Tax Regime Choice: A specific declaration on whether the individual is opting out of the New Tax Regime under section 202. (Note: The tax computation defaults to the new regime unless opted out)
Declaration: A certification signed by the senior citizen stating that the information is correct and that they do not have any other sources of income besides the stated pension and interest.

6. Important Outcomes and Consequences

TDS is still deducted: Filing Form 125 only exempts the senior citizen from filing an ITR; it does not exempt them from tax deduction at source (TDS). The bank will still compute the total income and deduct applicable tax after considering relevant deductions and rebates.
Reporting by the Bank: The specified bank uses the information from Form 125 to report the details to the Income Tax Department through Annexure III of their quarterly TDS statement (Form No. 138).
Withdrawal and Revisions: If the senior citizen’s income details change, or if they earn any other type of income later in the year, the submitted Form 125 must be withdrawn or revised. If the form is withdrawn due to other income, the senior citizen must file a standard Return of Income (ITR).

Form 125 Income Tax Rules 2026 pdf download

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Form No.125– Frequently Asked Questions

1. 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.

2. 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).

3. 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.

4. 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.

5. 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).

6. 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.

7. 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.

8. 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).

9. 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.

Form 125 Income Tax Rules 2026 pdf download and Key points

Form 125 Income Tax Rules 2026 pdf download

click here

Form No.125– Frequently Asked Questions

Guidance Note on Form 125