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
|
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.
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.
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.
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
CAclubindia
