{"id":4310,"date":"2020-02-24T13:18:39","date_gmt":"2020-02-24T13:18:39","guid":{"rendered":"http:\/\/aikdesigns.com\/blog\/?p=4310"},"modified":"2021-05-06T15:00:30","modified_gmt":"2021-05-06T15:00:30","slug":"guide-to-tax-saving-instruments-for-senior-citizens","status":"publish","type":"post","link":"https:\/\/aikdesigns.com\/blog\/guide-to-tax-saving-instruments-for-senior-citizens\/","title":{"rendered":"Guide To Tax Saving Instruments For Senior Citizens"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">One of the primary concerns for many retirees is the availability of enough funds during the later period of their lives. They wish to make the most rewarding and safe investment of their savings with the least tax liability. Some of the best investment options available to senior citizens which offer good returns as well as tax exemption are as follows:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">\u00a0<\/span><b>Senior Citizen Fixed Deposits<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Funds in fixed deposits are not under the influence of market fluctuations and hence, are 100% secure. The interest rates for senior citizens FD are higher than the FD of regular customers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The FD has a flexible tenure from 12 months to 60 months, which gives them the freedom to select any option as per their need<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">FDs give facility of loan and pre-mature withdrawal<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Non-cumulative FD is a better option as it provides a regular income in the form of interest pay-outs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tax saving FD with tenure of 5 years is a good option as the principal amount is eligible for tax exemption. The tax saving <\/span><a href=\"https:\/\/www.pnbhousing.com\/fixed-deposit\/interests-rates\/?utm_source=organic&amp;utm_medium=google&amp;utm_campaign=gp_org\"><span style=\"font-weight: 400;\">FD interest rate<\/span><\/a><span style=\"font-weight: 400;\"> is higher than the FD of other customers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The interest amount of Rs. 50,000 or less earned by a senior citizen per year enjoys tax exemption.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<blockquote class=\"wp-embedded-content\" data-secret=\"pWuEGa11pL\"><p><a href=\"https:\/\/aikdesigns.com\/blog\/investing-for-beginners-where-to-start-types-of-investments\/\">Investing For Beginners &#8211; Where To Start, Types Of Investments<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Investing For Beginners &#8211; Where To Start, Types Of Investments&#8221; &#8212; Aik Designs\" src=\"https:\/\/aikdesigns.com\/blog\/investing-for-beginners-where-to-start-types-of-investments\/embed\/#?secret=GKy4Lrr0UV#?secret=pWuEGa11pL\" data-secret=\"pWuEGa11pL\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">\u00a0<\/span><b>Senior Citizen Savings Scheme<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In this scheme, a senior citizen can invest a sum of Rs. 500 to Rs. 15 lakhs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The initial tenure of this scheme is five years. It can be renewed once, but only for three years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This scheme offers a higher rate of return (around 8.6%) and is a safe investment option.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SCSS has a simple application procedure and least documentation.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><b>Post Office Monthly Income Scheme<\/b>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This savings scheme allows a maximum deposit of Rs. 4.5 lakhs under single ownership and up to Rs. 9 lakhs for joint accounts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It offers an interest rate of 7.9% with reliable returns. The interest income is taxable beyond a ceiling of Rs. 50,000.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It offers safe and steady returns.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The interest amount can directly go into the savings account of the senior citizen for ease of use.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This scheme also has a maturity period of 5 years.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><b>Tax-free bonds<\/b>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These are government bonds with absolutely no risk of non-repayment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It pays a guaranteed interest which is tax-free.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The investment period for these bonds can be from 10 years to 30 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The maximum amount which one can invest in this scheme is up to Rs. 10 lakhs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><b>Debt funds<\/b>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These are mutual funds and are considered a safe investment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These bonds offer high return as well as high liquidity. A penalty will be applicable for pre-mature withdrawals before the minimum investment term.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><b>Invest in health insurance<\/b>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Health insurance provides security against health and medical costs. The premium paid gets tax exemption under Section 80D with a higher limit of up to Rs. 30,000.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These are some of the best short term investment options in India for those who are retired or considering retirement.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the primary concerns for many retirees is the availability of enough funds during&#8230;<\/p>\n","protected":false},"author":1,"featured_media":4314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[224],"tags":[],"class_list":["post-4310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-finance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts\/4310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/comments?post=4310"}],"version-history":[{"count":0,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts\/4310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/media\/4314"}],"wp:attachment":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/media?parent=4310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/categories?post=4310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/tags?post=4310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}