I often get request to **calculate income tax** for readers and** how they can save more tax!** It’s not possible for me to calculate it for everyone. So going forward I would pick cases and **show how to calculate income tax and if there is scope to save additional tax.**

**Below is the comment I received:**

Dear Amit,

Pl calculate my income tax.

I would retire on 31 Jul 2018. My income from Apr 18 to Jul 18 is Rs. 2,50,000. Thereafter I would get pension @ Rs. 18,700 per month. As on 31 Mar 19 estimate interest on my FDs is Rs. 2,15,000. I have invested Rs. 2,00,000 in senior citizen scheme. Pl confirm how much income tax I have to Pay?

Download:Tax Planning Guide for FY 2018-19

## Income Tax Calculation:

As far as possible I would use the format used in filing income tax returns so that its more helpful for everyone.

We first calculate the **total income for the financial year (FY 2018-19)**

- Income from Salary (April to July 2018) – Rs 2,50,000
- Income from Pension (August’18 to March’19) – Rs 1,49,600 (Rs 18,700 * 8)
- Income from Interest on Fixed Deposit – Rs 2,15,000

**Total Income = Rs 6,14,600**

The table below calculates the income tax:

**The total tax comes out to be Rs 3,879 which is just 0.63% of his income. This is lower than what he would have paid last financial year due to newly introduced Standard Deduction on Pension Income and Section 80TTB** (exemption up to Rs 50,000 on interest income)**.**

Read to know more:5 Good News for Senior Citizens in Budget 2018

## Recommendation to Save more Tax:

*Disclaimer: The recommendation is made based on limited information we have!*

As he pays very little tax there is nothing much to worry. He could have paid even lesser if he could take following tax benefits:

- Sec 80GG in case you live on rent and do not own a house (deduction up to Rs 60,000)
- Section 80D for Health Insurance Premium

Also for senior citizens SCSS is one of the best investments for regular income. So he choose the right investment for tax saving.

Also Read:Best Tax Saving Investments u/s 80C

Let me know if this was helpful and you have any other suggestions!

My DOB is 10-05-1938, Can i be considered as super senior citizen for the FY 2018-2019 ( AY 2019-2020 )

Thanks

Yes.

Dear sir, Iam senior citizen I have made a fixed deposit in bank December 2018 the amount is 991000, yearly interest is 71000 and I have made a Pradhan mantri vaya Vandana scheme in Lic the amount is 1000000, the yearly pension earned in same scheme is 83000 Kindly calculate my tax. And also my interest and pension amount how much TDs ????

Dear sir,

I shall retire on 28/02/2019.my birth date is 09/02/1959.thus I want to know that what would be income tax calculation factor for me either general or senior citizen.please send me details.

Thanking.

Your,s faithfully

Jayprakash

Sir,

will I get relief from local travel expenses. if yes what is section?

Pl calculate my income tax.

I would retire on 31 December 2018. My income from Apr 18 to December 18 is Rs. 7,50,000. Thereafter I would get pension @ Rs. 15,000 per month. As on 31 Mar 19 estimate interest on my FDs is Rs. 1,20,000. I have invested Rs. 15,00,000 in senior citizen scheme. Pl confirm how much income tax I have to Pay?

Sir,

I retired on 31st Dec 2017.I am getting income from mutual funds and deposits .How should I calculate income tax ?

Amit,I am an old 76 yrs and 100%handicapped,a pensioner of central govt.–pl.calculate my tax if applicable–I was getting basic rs8044/pm on 31.12.2015 but on 1.1.2016 it was basic rs21926[commutated[ rs 1600] and now basic rs 20370/pm .i have ni TD in bank/p.o etc .pl. calculate

my tax how much payable[as three years arrear of pay increase will calculate in this month]

My mother is a retired School Teacher. My father was also a School Teacher. He died on 24 Feb 2017. My mother get Rs. 275733 as a pension and also get Rs. 169198 as a Family pension in 2017-18 F.Y. She has a SCSS of Rs. 1200000. Her SCSS interest is 111600 in 2017-18 F.Y. She gets Rs. 305070 as a Fixed deposit interest in 2017-18 F.Y. Kindly calculate her Income tax in A.Y 208-19. Thanking you. sumit Das. ([email protected])

I am retired on 30th April 2017 . My total income consist of salary of April and pension of eleven months. My question is whether entire amount of Gratuity and commuted pension is tax free. Shall I show amount of Gratuity, commuted pension ,provident fund in income tax return.

Dear Chaudhari All retirement amounts are tax free except EL encashment

Where we have to show PF amount and gratuity

And where we have to show exemption. New gratuity act wef 29.3.2018. How we will get exemption from FY 2019 for pvt / PSU employee. Whether we have to pay IT for over 10 lakhs. Pls guide me. How it is acceptable.

I’m a senior citizen pensioner getting a monthly pension of 50,000/- of my late husband. While I’m getting a monthly pension of 20,000/- of my own; which makes our total yearly income of 8,40,000/- and I have made a FD of 1,00,000/-

I want to know that how much income tax returns I need to pay? And what are the exemptions that I can have to reduce tax amount?

I am a senior citizen and also apgovt pensioner.Retired on 30/11/2017.My salary income plus pension for FY2017-2018 881855-82271(Deductions)-799580Totalincoome.HOW MUCH TAX I WANT TO BE PAID? Kindly explain sir

For FY 2017-18 your tax including education cess would be Rs 72,013 (assuming you are senior citizen and net taxable income as stated by you is Rs 7,99,580 .

I m 62 yrs pensioner.

I m getting rs 30208 as gross pension monthly and there is deduction of rs 4266 of advance commuted .

Is amount 4266 is taxable or exemptable????

You would only be taxed on the pension received (i.e. 30208 – 4266). The commuted pension is tax free!

If we added arears of pention in present income it will comes in range of 10% s. charge .how it reduced sir . I am a sr citizen