Tax exemption limit for senior citizens is Rs 3 lakh

S C Vasudeva

I am a pensioner. My total pension is Rs 2,64,000 and interest on fixed deposits is Rs 32,000. I have an RD account in the post office of Rs 500 per month. The rebates are: LIC Rs 1,715 and rebate under Section 80U Rs 1 lakh. I have taken a loan for constructing a house and paid principal amount Rs 45,000 and interest Rs 21,000. Calculate my tax liability, if any. — nasib chand

On the basis of the figures given in your query, you would not be liable to pay tax as your total income is below taxable limit of Rs 3,00,000 as applicable to a senior citizen.

I, a senior citizen of above 60, am retired from the Railways on November 30, 2015.  My income for FY 2015-16 is as under:-

1 Salary (for 9 months) Rs 5,69,366

2 Pension (for 3 months) Rs 68,415

3 Interest received on 

bank FD (on amount of PF, DCRU, Rs 1,07,545

leave encashment & computation

deposited in Bank) Rs 1,16,161

Bank FD Rs 8371

Multiple Option Deposit Scheme Rs 245

Savings Bank account Rs 3,211

Total Rs 7,57,153

4 Rebate for savings (GPF & VPF 

(Rs 1,40,490 + CGE is Rs 170 + PPF 

Rs 1,200 = Rs 1,52,760) Rs 1,50,000

Health Insurance for self & wife.  

Premium paid through online 

on June 2, 2015. Rs 30,796

Amount deducted by Rly. 

On retirement for RELHS 

(Rly. Employee Liberalized Health Scheme) Rs 25,480

Cash Amount paid by me (having cash receipt) 

for cataract operation of my 82 year old widow 

mother who is getting family pension 

Rs 9,450 per month.  She has not any health 

insurance and is not income tax payee. Rs 25,000

5 TDS (on FD & RD  interest by bank 

Rs 11,592 + by employer Rs 8,000) Rs 19,592

Compute my net taxable income for AY 2016-17. What is the last date of filing the return? Am I entitled to get rebate for my mother’s operation? — ram parkash sharma

On the basis of the figures given in the query, you would be allowed a deduction of Rs 1,50,000 under Section 80C of the Income Tax Act, 1961.  Besides, you are also entitled to a deduction for the health insurance premium paid for yourself and for your wife to the extent of Rs 30,000.  You would not be entitled to a deduction of Rs 25,000 paid for the cataract operation of your mother as the same has been paid in cash. No deduction is allowable in respect of the amount deducted by the Railways for the Liberalised Health Scheme as the same is not a notified health scheme under Section 80D of the Act.  Your total income on the said basis works out at Rs 5,73,942 after allowing a deduction of Rs 3,211 under Section 80TTA of the Act in respect of interest on savings bank account. The total tax payable works out at Rs 35,831.  The net tax payable would therefore be Rs 16,239. Self assessment tax should be deposited before the date of filing the return of income.  The last date of filing return in your case is July 31, 2016. No interest is payable under Sections 234B and 234C of the Act as you are a senior citizen and do not have any income from business or profession.

I am working as a medical officer in ECHS [under MoD] on a contractual basis with a salary of Rs 60,000 per month. My contract is for a year and it is renewable each year with a break of 2 days yearly.  [There is no allowance defined as such/nor basic salary. TDS is being calculated 10 per cent each year. For the FY 2015-16, my income details are :- 

Total income: Rs 6,00,000

80c deduction: Rs 1,50,000

Sr. citizen — tax credit— Rs 5,000 or  Rs 2,000—as applicable [Sec 87A]

TDS: Rs 60,000

Gift to son: Rs 1,00,000 

Transport expenses Rs 5,000 per month [But not defined as transport allowance in the paid sum of Rs 60,000 per month lump sum] Calculate my tax liabilities.   

dr k singh

Your queries are replied hereunder:-

On the basis of figures given in the query your total income works out at Rs 4,11,600. This has been computed as under:-

Total professional fee Rs 6,00,000

Less deduction allowable 

under section 80C of the Act Rs 1,50,000

Net income Rs 4,50,000

Less Transport expenditure 

@ Rs 3,200 pm Rs 38,400

Net taxable income Rs 4,11,600

The transport expenditure has been restricted to Rs 3,200 pm on the basis of deduction allowable to a salaried person. In case you can prove that you have incurred a higher amount  for attending to your contractual assignment, it may be possible to claim a higher expenditure subject however to the fact that said amount has actually been incurred wholly and exclusively for the purpose of attending to your professional assignment.  Tax payable on the aforesaid net taxable income works out at Rs 16,645 as you have already paid tax of Rs 60,000 you should be entitled to a refund of Rs 43,355 plus interest on the excess amount of tax paid. The amount gifted to your son would not be deductible from your total income.