Skip to content

CA Intermediate · Taxation · Deductions from Gross Total Income

Mr. Subramanian, a resident aged 66, has no business income. In tax year 2026-27 he earned interest of ₹22,000 on his savings bank account, ₹38,000 on a bank fixed deposit and ₹15,000 on a post office recurring deposit. Under the old tax regime, what deduction is available to him for interest income from deposits?

The deduction is ₹50,000. For a resident senior citizen, interest on bank, co-operative bank and post office deposits is deductible up to ₹50,000. His eligible interest totals ₹75,000, which exceeds the ceiling, so the deduction is restricted to ₹50,000.

  1. A₹75,000
  2. B₹60,000
  3. C₹50,000Correct
  4. D₹10,000

Explanation

A resident senior citizen can claim a deduction for interest from deposits with banks, co-operative banks and post offices, limited to ₹50,000. Total eligible interest is 22,000 + 38,000 + 15,000 = ₹75,000, which exceeds the cap, so the deduction is ₹50,000. The ₹10,000 figure applies only to non-senior individuals' savings interest.

Did you get it right without looking?

One question tells you little. A timed set on Deductions from Gross Total Income shows your real accuracy, how long you take and where you lose marks.

Practise Deductions from Gross Total IncomeFree diagnostic mock

More Deductions from Gross Total Income questions