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

Retired Individual Under 50 Queries Tax on Fixed Deposit Interest; 7 Lakh Income Incurs 65,000 Tax A retired individual under 50 inquires about the income tax on interest earned from a fixed deposit, with no other income sources. The fixed deposit is under one crore rupees, and the individual owns property but earns no income from it. A respondent explains the applicable tax slabs for those under 60: no tax on income up to 2.5 lakhs, 10% on 2.5 to 5 lakhs, 20% on 5 to 10 lakhs, and 30% above 10 lakhs. Interest from fixed deposits is considered taxable income. The individual calculates a tax of 65,000 on a 7 lakh income.