Best tax saving schemes for senior citizens

Tax saving schemes

Investment is a major consideration while doing financial planning across every age group in life. You should begin investments early on in life to ensure you do not face any financial difficulties in your later years. Here are best tax saving schemes for senior citizens.

Senior Citizen Savings Scheme (SCSS)

One of the most popular investment instruments among senior citizens who are looking to save taxes while also gaining returns on their investments. It is specially created for Indian citizens above the age of 60 years.

National Savings Certificate (NSC)

NSC is another investment instrument that has gained immense popularity among senior citizens who are looking to invest in tax-savings investment. The NSC is another fixed income investment instrument available at post offices, and which can be invested in by anybody.

Bank FDs

Bank fixed deposits are secure investment instruments that are popular among investors looking to make low-risk instruments while also earning steady returns. Under Section 80C of the Income Tax Act, bank fixed deposits with a 5-year tenure are eligible for tax benefits.

Tax-Free bonds

Senior Citizens wishing to receive returns that outperform and outclass inflation and receive a respectable regular income should consider tax-free bonds as a fantastic alternative.

Public Provident Fund (PPF)

A Public Provident Fund is part of a long-term Post Office recurring plan. If you have not started a PPF account, you can still use it. The maximum investment is Rs 1.5 lakhs, the minimum investment is Rs 500 annually, the entire term is 15 years.