In this budget, Finance Minister Nirmala Sitharaman has opened a box of savings for senior citizens. Risk free maximum investment limit of many schemes has been increased. This has also cleared the way for more pension for them.
According to the changes and new schemes announced in the budget, an old couple can get a pension of up to Rs 70,000 every month. The government has increased the investment limit in Post Office Monthly Income Scheme (POMIS) and Senior Citizen Saving Scheme (SCSS). So much so that the Finance Minister has started Mahila Samman Saving Certificate (MSSC) especially for women.
Another savings scheme is already running for senior citizens, namely Pradhan Mantri Vaya Vandana Yojana (PMVVY). By investing Rs 1.1 crore in all these schemes, a senior citizen couple can get a pension of Rs 70,500.
How much investment and return
Earlier, a person could invest a maximum of Rs 15 lakh in this scheme. It has now been increased to 30 lakhs. This means that a couple can invest Rs 60 lakh in it. The government gives a return of 8% on this and its tenure is 5 years. The couple invests Rs 30 lakh in Pradhan Mantri Vaya Vandana Yojana. Its tenure is 10 years and the returns are 7.4 per cent.
Couples can invest a total of Rs 18 lakh in the monthly income scheme of the post office. Its tenure is 5 years, on which the return is 7.1 percent. Mahila Samman Savings Certificate, which is a new scheme of the government, has a tenure period of 2 years and can invest up to Rs 2 lakh every year. The return in this is 7.5 percent. Your total investment is Rs 1.1 crore. The return on this will give you a pension of Rs 70,500 every month.
Tax and lock-in plans Amol Joshi of Rupee Investment Services says that these schemes are very tempting but one of the drawbacks is that you have to pay tax on its returns. However, people who do not have any other source of income can move to the new tax regime as there is no tax on personal income up to Rs 7 lakh. This means that the interest received from these schemes will be tax free for 2 people.
