In India how is the tax computed for interest on bank Fixed deposits, for a senior citizens?

Question

In India how is the tax computed for interest on bank Fixed deposits, for a senior citizens?

Answer 1

for senior citizen above 65 years old

here is the computation.

According to Section 88 of Finance Act, 1992, provides income tax rebate of upto Rs. 15,000  or actual tax whichever is less to senior citizens who have attained the age of 65 years at any time during the relevant previous year.

RBI (Reserve Bank of India) has permitted higher rates of interest on saving  schemes of Senior Citizens (persons having the age of 65 years and above).  Accordingly, w.e.f. 15.05.01,  Banks  permitted 0.5 per cent higher rate of interest on fixed deposits.

These are some benefit to senior citizen in India.

For more information please do let me know.

Hope that will solve your problems. (I hope)

Bye.

Answer 2

Bank will deduct TDS at 10.3%. You can file Form 15H so that no TDS is deducted if your yearly income is going to be less than Rs. 2,25,000. Form is available from the bank.

Answer 3

it is computed the same way as for other persons who are not senior citizens, the only diff is that 0.5% additional interest is paid to senior citizens