n NISM Certifications
XVII NISM Series XVII
Medium

Upon retirement, an individual’s income is taxed according to their applicable income tax slab, not a special retirement rate.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No income tax for retired persons

  2. B

    Income is subject to tax as per the previous employment slab

  3. C

    Income is taxed at a special retirement rate

  4. Income is subject to income tax as per his tax slab in retirement

    Correct answer

Why this is the answer

Taxation depends on the retiree's income level and applicable slabs.

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