Income tax for senior citizens

Assuming that the pension received is from your former employer. 

The total income will be (25000+44000)*12  = 8,28,000. You will be eligible for standard deduction of Rs. 50,000. 

Therefore, total taxable income comes out to be Rs. 7,78,000. 

Tax liability - Rs. 65,600 + 4% cess

 

In case you claim deduction under section 80C for Rs. 1,50,000,  Tax liability comes down to Rs. 35,600 + 4% cess

Thank you very much Mam

COMPUTATION OF TOTAL INCOME :

(A). INCOME FROM SALARY :

(i). Basic Salary - 44,000 × 12 = 5,28,000/-
(ii). Pension Income - 25,000×12 = 3,00,000/-

Gross Salary : 8,28,000/-

Less : Deduction under Section 16 :
(a). Standard Deduction u/s 16(ia) : ( 50,000 )

Net Salary : Rs. 7,78,000/-

Gross Total Income : Rs. 7,78,000/-
Total Income : Rs. 7,78,000/-

COMPUTATION OF TAX PAYABLE :

Upto Rs. 3,00,000 : EXEMPTED.
Next Rs. 2,00,000 @ 5% : 10,000.
Balance Rs. 2,78,000 @ 20% : 55,600.

Gross Tax Payable : Rs. 65,600/-

Add : Health & Education Cess @ 4% on 65,600 = 2,624.

NET TAX PAYABLE : Rs. 68,224.
R/O u/s 288B ( to the nearest multiple of 10 ) : Rs. 68,220/-

NOTE : The Tax Liability changes if you invest in Tax Savings Instruments like 80C or 80D etc. The above calculation is done on the assumption that you are not claiming any DEDUCTION under CHAPTER VIA of the Income Tax Act 1961.

Best Wishes
Shivam RC.
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