Achi news desk-
New Delhi4 days ago
- copy link
If you are a senior citizen and want to save tax along with safe investment and better returns, then you should make an ideal investment strategy. With this you will not only get high returns but you can also save tax. Here we give you information about some tax saving schemes…
1. Post Office Old People’s Savings Scheme Account:
- Currently 8.20% annual interest is given in this scheme.
- In this, an account can be opened for ₹ 1000.
- The maximum investment can be up to Rs 30 lakh.
- Its maturity period is 5 years.
- If you invest up to Rs 1.5 lakh, you can claim tax exemption on this amount.
- After the age of 60 or more, the account can be opened by going to the post office.
- A VRS taker who is more than 55 years but less than 60 years can also open this account. Click here for more information about the scheme…
2. Tax Saving Fixed Deposit:
This scheme is for a lock-in period of 5 years. The interest received in this is fully taxable. However, tax is levied only on interest income of more than Rs 1.5 lakh in any one financial year. Although, this scheme is for everyone, but it is a better option for senior citizens who fall in the high income group.
3. Public Provident Fund (PPF):
- PPF is a low risk investment scheme.
- It is directly regulated by the central government and the government also decides the interest rate.
- Currently, 7.1% annual interest is given on the PPF account.
- It comes under the EEE category. That means investment, interest and principal are tax free.
- A PPF account can be opened at any post office or bank. Click here for more information on this scheme…
4. Equity Linked Savings Scheme (ELSS):
- There are mutual funds where investors’ money is blocked for 3 years.
- ELSS category mutual funds have given returns of up to 58.98% in a year.
- In this category of mutual funds, tax exemption is available on investment up to Rs 1.50 lakh under Section 80C of the IT Act.
- However, since it is linked to the share market, it carries more risk than small savings like FD or NSC. Click here for full information about the scheme…
5. Tax Free Bond:
- This is a fixed income investment. It is issued by the government and companies.
- Investing in this means investing in government schemes, companies and their infrastructure projects.
- The interest received from this is tax-free up to Rs 1.5 lakh.
- It is generally purchased for 5 years. But it can be kept for 15 years.
- Money can be taken by selling at any time in between.
Main types of tax-free bonds
- Infrastructure Bond – Investments are made in building roads, airports and power plants.
- Housing Bond – National Housing Bank publishes it, which is invested in housing projects.
- Power Bond – Power companies issue bonds to finance power plants.
- Railway Bond – It is published by Indian Railways. Used in the development of Rewal.
- Public Sector Unit Bond – These bonds are issued by government companies. Your money invested in this is spent on different projects.
