Mr. Aggarwal, a resident senior citizen, aged 86 years, is a retired State Govt. employee. He gets pension of 72,000 p.m. He has his saving account…

Computation of total income and tax liability of Mr. Aggarwal for A.Y.2026-27 under optional tax regime Particulars Particulars ₹ I Salaries Pension (₹ 72,000 x 12) 8,64,000 Less: Standard deduction u/s 16(ia) 50,000 8,14,000 II Income from Other Sources Interest on savings account 15,000 Interest on fixed deposit (10lakh x 7% x 9/12) 52,500 67,500 Gross total income 8,81,500 Less: Deductions under Chapter VI-A Under section 80C Deposit in 5 years term deposit, restricted to 1,50,000 Under section 80TTB Interest on fixed deposit and savings account, restricted to 50,000, since Mr. Aggarwal is a resident Indian of the age of 60 years or more 50,000 2,00,000 Total Income 6,81,500 Computation of tax liability for A.Y. 2026-27 Tax on 6,81,500 [20% on income exceeding 5lakhs, being the basic exemption limit, since Mr. Aggarwal is of the age of 80 years or more] 36,300 Add: Health and Education Cess@4% 1,452 Tax liability 37,752 Tax liability (Rounded off) 37,750