Income Tax calculation for a Retired Person

I am a retired and requires advice on tax payment.My income is ….
Monthly pension…. Rs.11000/-per month
Interest on FD… Rs. 6000/-per month
Rent on property… Rs 2000/-per month

My monthly expenditure on house loan Emi and insurance
House laon EMI… Rs. 5500/- per month
PLI… Rs. 1100/- per month

MY yearly premium of ULIP
Yearly… Rs 55000/- per anum

Whether I have to pay any tax..?

Dear, had u posted 2 more data – ur current age & break up of ur Home loan EMI in Interest & Principal. it ‘ll be a lot easier to me to calculate ur exact Tax liability. Anyway i’m trying to untangle ur tax query by assuming that ur age is below 65 (i.e. u r not a Sr. citizen) & out of ur EMI pmt. of 66000 Rs. P.A., ur Interest component is 20K & Principal component is 46K. Here goes ur tax calculation.

A. Annual pension income = 132000
B. Annual Interest income = 72000
C. Rent income calculation –
a. annual rent received = 24000
b. property tax paid to municipality (u forget to mention, i’m assumeing it) = 1000
c. Gross rent income = a-b = 23000
d. 30% deduction for maintenance of property = 30% of c = 6900
e. net rental income = c-d = 16100
D. Gross annual Taxable income = A+C+e = 220100 Rs.
E. Interest paid on home loan = 20000
F. Net annual income = D-E = 200100
G. Investment in 80C instruments = ULIP+PLI+HOME Loan Principal = 55000+13200+46000 = 114200 (as effective investment in 80C allowed upto max. limit of 1L) hence amount available for deduction = 100000
H. Net taxable income = F-G = 100100

As net taxable income is below the zero tax limit of 1.5L, the good news is u ‘ll not have to pay any income tax on it as per the above calculation.

Note – plz. put actual figures of ur home loan in the above calculation as i have assumed it.



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