I am recently retired after 60 years of age. Please inform how much I have to pay tax on the following:
1. I invested Rs 45 lakhs in FD and am earning interest of approximately Rs 25,000 per month.
2. I have nominal pension of Rs 2,090 per month.
So, how much tax is applicable to me as a senior citizen?
Please clarify.
Ans: For a senior citizen, income upto Rs 3 lakhs is not taxable. In this case, your annual income would be Rs 3.25 lakhs.
So Rs 25,0000 over the exemption limit would be taxed at 5 per cent.
If you don't have any investments to claim deductions, then you would be liable to pay tax of Rs 1,254 under the old and new tax regime.
However, if you claim deductions, then you can eliminate your tax fully.