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).