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Total taxable income

24 October 2013

Hi,

My father(age 67 years ) is having income from yearly bank's interest through various bank deposit and MIS scheme of post around 305000.

Also in addition to interest income he is getting 7000/-PM rent from one of house which is on my mother's name.

So could you please let me know how much income tax he needs to pay?

Thanks in advance.

Vaishali Patil

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11 Replies

CA Pallav Singhania (❤ Work Hard Party Harder ❤) (32322 Points)
Replied 24 October 2013

Income From Other Source
Bank Interest {Net}	305000

Income From House Property
Rent from Property 84000 Less: 30 percent STD deduction 25200	58800
Gross Taxable Income Less: Deduction U/S 80TTA {Interest on saving} 305000	363800 {10000}
Taxable Income	353800

Tax on Total Income

Upto 250000 NIL

250000- 500000 10 percent

Tax on Income.

353800-250000

103800 X 10 percent

=10380 + 3 percent Cess

=10691

NOTE: Assuming the wife's income clubbed in the income of the husband.

CA Subhash Bhaskar (Practicing CA) (291 Points)
Replied 24 October 2013

Assuming that the computation is for the AY 2013-2014 deduction of Rs. 10,000/- on account of saving bank intt. shall be allowed u/s 80TTA. Further basic exemption limit shall be of Rs.2,50,000/- being senior citizen. Further being the owner of the house is ur mother rental income shall be taxed in her hands and assuming that she is a senior citizen it shall be exempt.

rahul tejaswi (Professional) (31 Points)
Replied 25 October 2013

Wel xplained by Mr. Singhania

Mihir (Wealth Manager) (5293 Points)
Replied 25 October 2013

You have not mentioned the TDS deduction made by the bank in the deposits. Your tax liability will be reduced after computing your TDS deduction on bank deposits. Check your 26AS.

vipul jain (pune) (38 Points)
Replied 25 October 2013

Will the 2000 rebate be available in these case...??

sumit jain (Ca Final Student and Article) (71 Points)
Replied 25 October 2013

Since the total taxable income is less than 500000 hence rebate u/s 87 (2) of rs. 2000 will be allowable from the current p.y. I.e. 2013-14(a.y. 2014-15). This provision came into force from finance act, 2013

krishna gopal khedia (IPCC) (31 Points)
Replied 25 October 2013

Tds deduction will reduce tax liability

SHANKAR GURNANI (cheif life insurance advisor) (22 Points)
Replied 26 October 2013

what is 2000 rebeat

B.S.Arora (N/A) (45 Points)
Replied 26 October 2013

I think the deduction of Rs. 10,000/- from Interest received from Bank Fds, SCSS, MIS Scheme etc is incorrect. This deduction of Rs. 10,000/- is allowed in interest accrued/credited by the Bank from the Bank Saving Account to the Acct of the individual Account Holder.

Please correct me if I am wrong and quote the relevant authority.

B.S.Arora

Sunita (Accountant) (39 Points)
Replied 27 October 2013

yes Mr.Arora point is right

Parth Bhavsar (student) (26 Points)
Replied 28 October 2013

In above example house owner is his mother n not his father so why we clubbed income of h.p in his fathers income..?? His rental incone taxable in d hands of his mother. Can i right????