Now Reading: Pension, FD interest, rent taxable even after retirement
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Pension, FD interest, rent taxable even after retirement
Many retirees assume their tax liability ends with their salary. The Economic Times reports that monthly pension, interest from savings accounts, FDs, post office deposits, and the Senior Citizens' Savings Scheme remain…
The Story in Brief
Many retirees assume their tax liability ends with their salary. The Economic Times reports that monthly pension, interest from savings accounts, FDs, post office deposits, and the Senior Citizens' Savings Scheme remain taxable. Rental income after the standard 30% deduction, capital gains from shares, mutual funds, and property, dividends, and annuity from insurance companies are also fully taxable.
Even interest accrued on cumulative FDs and interest on income-tax refunds must be reported. Submitting Form 15H only prevents TDS, not exempts income, you must still file ITR if your total income exceeds the taxable threshold (Rs 12 lakh under new regime, Rs 5 lakh under old) or to claim the Section 87A rebate.
The Indian Opinion
The notion that retirement income is tax-free is a dangerous myth pushed by casual advice. Retirees often overlook small but taxable streams, interest on refunds, notional rent from a second house, or part-time consultancy fees. The real test is not whether TDS is deducted but whether total income crosses the slab. Filing ITR even when tax is nil is the only way to stay clear of notices. A simple annual check of the Annual Information Statement can save years of harassment.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
