My wife has an estimsted income of Rs. 450000 by way of bank/post office interest.She has no savings this FY ( FY 2022-23) to get the benefit of 80C . She is a senior citizen aged 70 years. Does her income attract income tax ? What investment should she do to avoid tax ? .

Ans: Yes, post deposits and bank deposits are eligible for deduction u/s 80TTB for senior citizen.

Further, rebate of Rs.12,500 is available for person earning taxable income upto Rs.5 lakhs. Thus, after considering rebate, there will not be tax liability.

Ans: Your wife falls within the basic exemption limit and hence she need not file tax returns or pay income taxes. However, incase you intend to obtain any loan in the future in her name then lenders will ask for tax returns for last 2 or 3 years. Hence, bear that in mind. In any case income taxes are not required to be paid by her but return to be filed.

Ans: You're taking the right steps to plan taxes wisely. Let’s discuss this in detail, keeping every angle in mind.

Tax Basics for Senior Citizens
A person above 60 years is called a senior citizen.

Senior citizens get a basic exemption limit of Rs. 3 lakh.

If total income is below this limit, no tax is payable.

This rule applies even if income includes short-term capital gains.

Your Wife's Income – First Scenario
Total income is Rs. 1.5 lakh.

This includes Rs. 50,000 from bank interest and dividends.

And Rs. 1 lakh is from short-term capital gains.

Her total income is below Rs. 3 lakh exemption limit.

So, she does not need to pay any tax.

No income tax or STCG tax is payable in this case.

Your Wife's Income – Second Scenario
Now, her total income is Rs. 2.9 lakh.

Rs. 50,000 is from interest and dividend income.

Rs. 2.4 lakh is from short-term capital gains.

Again, the total income is less than Rs. 3 lakh.

She stays below the exemption limit.

So, no income tax is payable even in this case.

How STCG Is Treated for Tax
STCG from equity mutual funds is taxed at 20%.

But only after basic exemption limit is crossed.

So, if her total income is below Rs. 3 lakh, no tax on STCG.

Unused exemption limit can be adjusted with STCG.

This is a useful benefit for senior citizens with low income.

Important Points You Should Know
There is no need to file ITR if income is below exemption limit.

But still, filing return is advisable.

Filing helps in record keeping and claiming future refunds.

It also helps if any tax is already deducted (TDS).

Steps You May Consider
Check if bank has deducted any TDS.

If yes, file return to claim refund.

Maintain proper records of all transactions.

Keep dividend and capital gain statements ready.

Use form 26AS to match tax deductions, if any.

Filing return will keep compliance simple and safe.

For Future Years – Tips to Save Tax
Try to keep total income within Rs. 3 lakh limit.

Invest in tax-efficient mutual funds.

Avoid unnecessary capital gains when not required.

Spread gains across years to keep them tax-free.

Use senior citizen saving schemes to get regular income.

Plan investments with help of a Certified Financial Planner.

STCG – A Quick Recap
Tax is payable only when total income exceeds Rs. 3 lakh.

For income up to Rs. 3 lakh, no STCG tax applies.

Both income and capital gains are considered together.

This rule helps senior citizens save tax in a simple way.

Final Insights
Your wife’s income is under the tax limit in both cases.

Hence, she has no tax liability for either income level.

There is no need to pay STCG tax when income is below exemption.

Make sure to file return if needed and keep all proofs handy.

Always plan income and redemptions with long-term clarity.

Work with a Certified Financial Planner to plan tax-friendly investments.

Proper planning can help save more and stay worry-free.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment