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Senior Citizen having Interest Income only for AY 2020-21

As the Income Tax Return filing due date is approaching for the AY 2020-21, let us understand how to compute Income Tax Liability in the case of Senior Citizen having Interest Income only for AY 2020-21.

ITR-1 is the Form for AY 2020-21 for any Senior Citizen who is having only interest income for the financial year 2019-20.

Example 1:

Suppose Mr. A (Senior Citizen – Age 63), has the following Income:

Interest from Saving Bank Account Rs.6,046/-, Interest on FDR Rs.2,83,955/- and Interest on Income Tax Refund Rs.2/- and Tax has been deducted for Rs.160/- on Interest Income.

Determine the Tax Liability of Mr. A for AY 2020-21.

Computation of Total IncomeSub TotalTotal Amount (In Rupees)
Income from Other Sources (Chapter IV F)  
Interest from Saving Bank A/c6,046 
Interest on F.D.R.2,83,955 
Interest from IT Refund22,90,003
Gross Total Income 2,90,003
Less: Deductions (Chapter VI-A)  
u/s 80TTB (Interest from Saving Bank Account & FDR.)50,00050,000
Total Income 2,40,003
Round off u/s 288 A 2,40,000
Tax Due (Exemption Limit Rs. 300000) 0
T.D.S. 160
Refundable (Round off u/s 288B) 160

Example 2:

Suppose Mr. A (Senior Citizen – Age 63), has the following Income:

Interest from Saving Bank Account Rs.11,250/-, Interest on FDR Rs.3,12,598/- and Interest on Income Tax Refund Rs.254/- and Tax has been deducted for Rs.4160/- on Interest Income.

Determine the Tax Liability of Mr. A for AY 2020-21.

Computation of Total IncomeSub TotalTotal Amount (In Rupees)
Income from Other Sources (Chapter IV F)  
Interest from Saving Bank A/c11,250 
Interest on F.D.R.3,12,598 
Interest from IT Refund2543,24,102
Gross Total Income 3,24,102
Less: Deductions (Chapter VI-A)  
u/s 80TTB (Interest from Saving Bank Account & FDR.)50,00050,000
Total Income 2,74,102
Round off u/s 288 A 2,74,100
Tax Due (Exemption Limit Rs. 300000) 0
T.D.S. 4,160
Refundable (Round off u/s 288B) 4,160

How to file ITR 1 with Form 16 for AY 2020-21

Deduction in respect of Royalty Income under Section 80QQB and Section 80RRB.

Want to know how you can pay self-assessment tax in online mode.

ITR-3 AY 2020-21 Individual: Computation of Total Income, Surcharge, Interest, and Tax Payable

CA Devesh Thakur

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