New Delhi, June 14
The senior citizens, who have invested in the Senior Citizens Savings Scheme that gives 9 per cent interest rates on investment up to Rs 15 lakh, will have to pay tax who come under the tax net.
The tax will be deducted at source for those elderly people who have invested in the scheme, if they came under the tax net, Finance Ministry sources clarified.
The senior citizens beyond 65 years of age and having no taxable income can fill in Form 15 H, ministry officials said.
Those who are between 55-65 years of age would have to fill Form 15 J in case they did not have taxable income, they said.
For all others, tax would be deducted at source on interest income, which was deposited in their savings accounts quarterly, they said.
The tax rate at 10 per cent is raised to 10.2 per cent due to education cess. Those with income beyond Rs 10 lakh per annum, would also pay 10 per cent surcharge, increasing their tax liability on interest income to 11.22 per cent.
