Senior citizen has ₹1.28 crore in Fixed Deposit, POMIS, and SCSS. How much tax will he pay in FY 2025-26?

Senior citizen PR Murthy recently shared with us that he has invested around ₹1.28 crore in Fixed Deposit (FD), Senior Citizens Savings Scheme (SCSS), and Post Office Monthly Income Scheme (POMIS). And he wanted to know the maximum tax exemption he can get from the interest earned through these investments and the total tax that he may have to pay in FY 2025-26.

He shared the breakdown of his investments as follows:

1. SCCS: ₹ 30 lakhs
2. POMIS: ₹18 lakh
3. Bank Fixed Deposit: ₹80 lakh

The following is our answer to his query:

You have not shared the interest rates of your FD, SCSS, and POMIS deposits. Also, you have not shared whether you have income from other sources.

To answer your query, however, we are assuming that you have no income from any other sources. Further, we assume that you have booked FD at 7% interest, SCSS at 8.2%, and POMIS at 7.4%.

Please note that there is no tax exemption on interest earned from investing in FD, POMIS, and SCSS. But thanks to Budget 2025, up to ₹12 lakh of your interest income will be tax-free under the new tax regime.

Now let's look at how much interest you will earn in FY 2025-26 from these three investments.

In case you fail to submit Form 15H, then you would be able to claim a refund against TDS by filing Income-tax Return (ITR) in June-July 2026 for AY 2026-27 (FY 2025-26).