NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Mrs. Leela Nair, a resident aged 62, wants to know why her income tax computation differs from that of her son though both earn the same income. Which factor is primarily responsible for the difference in the basic exemption limit under the old regime?
Her age is the reason. Under the old tax regime, the basic exemption limit is higher for resident senior citizens aged 60 and above but below 80 than for younger individuals, so identical incomes can produce different tax.
- AHer age as a senior citizenCorrect
- BHer place of residence within India
- CHer choice of bank
- DHer source of income being rent
Explanation
Under the old regime the basic exemption limit is higher for resident senior citizens (60 to under 80 years) than for individuals below 60. Place of residence within India, bank or the source of rent does not change the limit.
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