Income tax on interest earned on fixed deposit for retired individual less than 50 years

[Guest]

Hi All, Could anyone please advise the income tax percentage which is applicable for an individual who is not having any salaried income or any other source of income except the interest on the fixed deposit.

Person age is : 40

Fixed deposit amount : less than 1 crore rupees

Employment status : Retired

Property owned : Yes (but no income is earned from the property)

[Ganeshan Kalyani]

Sir the Income tax slab for individual upto age 60 is as follows:

Income upto 2.5 lacs is exempt

2.5 lacs to 5 lacs 10% tax

5 lacs to 10 lacs 20%

10 lacs and above 30%.

Now you can judge under which slab you are covered for taxation. Thanks.

[Guest]

Thanks Ganeshan for your reply.

Is interest earned on fixed income deposit is considered as Income ? I do not have any source of income except interest earned on Fixed deposit.

Could you please advise?

[Ganeshan Kalyani]

Yes interest received from FD is also income and subject to income tax. Thanks.

[Guest]

Thanks for your reply.

So, if someone is earning 7 lacs, that means,

2.5 lacs - 0 percent tax

2.5 lacs - 10 percent tax

2 lacs - 20 percent tax

and the person need to pay, 65,000.00 tax.

is that right ?

AI Summary

Interest on fixed deposits is taxable as income and is assessed under standard individual tax slab rates. Interest earned from fixed deposits is taxable and must be included in total income; for individuals below sixty the income is assessed under tiered tax slabs with successive portions taxed at progressively higher specified rates, and the example applies those slab rates to compute the aggregate tax liability for a retiree with no other income.