What is the tax liability for a senior citizen?
- For net taxable income between ₹3 lakh and ₹5 lakh the applicable tax rate is 5%.
My last year’s income from pension was ₹5,31,910 and the interest from bank accounts was ₹2,16,883. As for exemptions under the income-tax Act, I am eligible for the following deductions: ₹3 lakh exempt limit for senior citizens, ₹1.5 lakh for investing in public provident fund (PPF), ₹50,000 for mediclaim, and ₹50,000 under Section 80TTB, besides the standard deduction of ₹50,000. Hence my net taxable income is ₹148,793, which means that I do not need to pay any income tax. But after filing the income tax return, the acknowledgement printout shows the following:
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