Tax related SCSS/PMVVY schemes

Hello,

The total income of your mother would be below the basic exemption limit applicable to a senior citizen assessee. Hence no tax would be payable.

Further investment in SCSS A/c. is eligible for deduction u/s. 80C. Interest from such A/c. is taxable but a senior citizen can claim deduction u/s. 80TTB for the maximum up to Rs 50,000 in a single financial year.

If TDS is deducted by the bank/post office on the interest, the income tax return of your mother can be filed to claim the refund.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Ravi,

Here is my reply to your query:

Computation of Income - Financial Year- 2019-20

Income under the head salary (Pension) - (12000*12)- 1,44,000

Income under the head other sources (Interest)- (15,00,000*8.6%)- 1,29,000

Total Income - 2,73,000

In case of an Individual (age above 60 years but less than 80 years)- There is no tax liability up to Rs. 3,00,000. 

Also, investment in SCSS is tax free and your mother will get the deduction from the taxable income up to maximum of Rs. 150000.

Thanks and Regards 

Divya Chugh 

zero tax considering the above two income.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi Ravi,

Hope you are doing well !!

There would be no tax liability on her as her income would be below the basic exemption limit.

Dear Sir,

For the Senior Citizens exemption limit for charging tax is Rs. 3,00,000/-. As in your mother's case the total income is not crossing Rs. 3,00,000/- there is no tax liability. 

If these are the only income stream, she does not need to pay any tax.

Hello Sir,

There would be no tax implication on the same as her income is not exceeds the  exemption limit for senior citizens..