NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Mr. Raman Iyer, aged 45, is a resident individual who has opted for the old tax regime. His income for the year: salary income (net of standard deduction) Rs 9,00,000 and interest on bank fixed deposits Rs 60,000. He has invested Rs 1,50,000 in eligible Section 80C instruments. Ignoring surcharge, cess and any other deduction, what is his total taxable income?
Total taxable income is Rs 8,10,000. Salary of Rs 9,00,000 plus FD interest of Rs 60,000 gives gross total income of Rs 9,60,000, from which the Section 80C deduction of Rs 1,50,000 is subtracted under the old regime.
- ARs 8,10,000Correct
- BRs 9,60,000
- CRs 7,50,000
- DRs 8,60,000
Explanation
Gross total income = 9,00,000 + 60,000 = 9,60,000. Deduction under Section 80C is capped at 1,50,000, giving 8,10,000. Option B ignores the deduction, and option C wrongly deducts the interest instead of adding it.
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