In India, all persons aged 60 years and above are classified as senior citizens. Senior citizens get benefit in many schemes of central and state government. It is generally assumed that senior citizens are retired.
But many senior citizens work even after the age of 60 years. However, if the income is above the tax limit, senior citizens also have to pay tax. But there are some schemes through which senior citizens can get rid of tax.
Investment Schemes for Senior Citizens to Avoid
Tax There are some investment schemes for senior citizens if they want to get rid of tax. By investing in these schemes, senior citizens not only get tax exemption, but also get a good return on investment. Let’s take a look at these 5 investment schemes.
1. Senior Citizen Savings Scheme:-
The Central Government’s Senior Citizen Savings Scheme is an excellent investment option for senior citizens. This scheme not only provides tax exemption, but also provides good returns. The central government has increased the interest rate on this scheme from 7.6% to 8% from January 1, 2023. The minimum investment period is 5 years, which can be extended up to 3 years. Up to 15 lakh rupees can be invested in this scheme. A minimum investment of Rs 1.50 lakh is required for tax exemption.
2. Tax Saving Fixed Deposit :-
This scheme is available for investment of senior citizens in all banks of the country. However, the interest rate on this scheme is different in all banks. 7.75% in Axis Bank, 7.25% in SBI. In this too, the minimum period of investment is 5 years and up to 1.50 lakh rupees can be invested in a year.
3. National Savings Certificate :-
This investment scheme also exempts senior citizens from tax for a minimum period of 5 years. This is a central government scheme and has increased the interest rate on this KM from 6.8% to 7% from January 1, 2023.
4. ELSS Scheme:-
ELSS scheme of mutual funds is also a good option for tax exemption for senior citizens. It has a minimum investment period of 3 years. The return on this scheme depends on the fluctuations in the market. In this case, the risk remains.
5. Tax Free Bonds :-
This is also a good option for citizens to get rid of tax. In this scheme, bonds are issued by government companies or institutions. The minimum period of investment in this scheme is 5 years.
