We are in a dilemma and would appreciate suggestions and information regarding paying Income Tax in India. My father was a central govt employee & we never had to bother about paying IT as it was deducted from his salary. But after retiring in 2006-2007, he got lumsum amount that he invested in Senior Citizen Scheme in PO. Rest into Monthly Income Scheme in PO & remaining amount in Bank. He expired in early 2008 & we have no clue if we have to pay taxes or not. At least during his time we did not fall under the IT bracket. Since he did not get pension he bought a policy with LIC for which my mom now receives 5000 plus monthly. Our only source of Income is the Interest we earn from the SCSS, MIO & FDs & LIC. We also have our own flat in which we are living. I calculated the total income we get from the various deposits to be roughly 3.5 to 3.8 lakhs per year. The amount is interest I calculated on various PO & Bank FDs without any TDS deduction as I have no clue how much is actually deducted from the annual interest & if it is deducted at all. I know my dad bought Kisan Vikas Patra for 1 lakh just before his death presumably to save taxes. That is everything I could calculate & think of for calculating our annual income. Can some one please let us know if we fall under the tax bracket? And how much tax we have to pay since 2008-2009. And is there any deduction in tax due to KVP purchase. My mom would turn 60 on 1st March, 2012. We would be very grateful to any one who could help us solve our problem & let us know our taxable income if any. Thanks again.