Module: General Practice
Q16: Scenario: Mr. Sharma, a senior citizen (aged 65), has a total income of Rupees 6,00,000 comprising only of pension and interest income. He did not file any form to opt out of the default tax regime. What is his tax liability for Assessment Year 2027-28?
✅ Correct Answer: C
His tax liability is Nil.
The Union Budget 2026-27 makes the New Tax Regime the default.
Calculation: Income is 6,00,000.
Less Standard Deduction of 1,00,000 (New Limit) = Net Taxable 5,00,000.
Tax on 5 Lakh is 5,000 (0-4L Nil, 4L-5L at 5%). Rebate under section 87A covers this 5,000.
Thus, Final Tax Payable is Zero.
The Union Budget 2026-27 makes the New Tax Regime the default.
Calculation: Income is 6,00,000.
Less Standard Deduction of 1,00,000 (New Limit) = Net Taxable 5,00,000.
Tax on 5 Lakh is 5,000 (0-4L Nil, 4L-5L at 5%). Rebate under section 87A covers this 5,000.
Thus, Final Tax Payable is Zero.