CAn you comment on Taxation for interest earned? I want to know if my interest earned would be tax free till 61 or not?

Ans: As per the income tax laws in India for the financial year 2022-23, if your income from all sources, including interest income from fixed deposits, exceeds Rs. 2.5 lakhs, you are required to file an income tax return.

In your case, your interest income from fixed deposits is Rs. 6 lakhs per year, which is above the basic exemption limit of Rs. 2.5 lakhs. Therefore, you will have to pay tax on the amount that exceeds the exemption limit.

The tax rate applicable to your income would depend on your total income, including any deductions you may be eligible for. For senior citizens (individuals aged 60 years or more), there are higher basic exemption limits available. For the financial year 2022-23, the basic exemption limit for senior citizens is Rs. 3 lakhs.

Regarding your medical insurance premium, you may be eligible for a deduction under section 80D of the Income Tax Act, up to Rs. 50,000 if you are a senior citizen. This deduction can be claimed from your taxable income, reducing your tax liability.

Ans: Hello Krishan,

Yes, the interest earned on Fixed Deposits (FDs) and savings accounts is indeed taxable. However, there are certain provisions in the Income Tax Act that provide some relief to senior citizens.

As per Section 80TTB of the Income Tax Act, senior citizens, those who are 60 years or above, can claim a deduction of up to Rs 50,000 from their gross total income. This deduction is applicable on the interest earned from FDs, savings accounts, and recurring deposits.

So, if the total interest income earned by a senior citizen in a financial year does not exceed Rs 50,000, then it will not be subject to tax. However, if the interest income exceeds Rs 50,000, then the amount over Rs 50,000 will be taxable.

I hope this clarifies your query.

Best Regards,
Hardik

Ans: Hi,
There will be no tax liability to you, basis only interest income of 6 Lacs, as under net tax regime no tax upto 7 Lac.

Ans: For FY 2025-26, for the income mentioned above,
NO Tax Liability under New Regime

Ans: Yes, no tax