Let us know about those great plans through which you can not only get good returns but also get tax exemption through these investments.

Senior Citizen Saving Scheme

This scheme has been specially designed by the government for people who are above 60 years of age. The main objective of starting this is to provide regular income to senior citizens even in old age. The good thing is that investment in this scheme can be started with only Rs 1000. Investors can invest up to a maximum of Rs 15 lakh if ​​they wish. The maturity period in this scheme is of 5 years. On which interest is given at an interest rate of 8 percent. Not only this, the investment made in Senior Citizen Saving Scheme can also provide tax benefit up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.

Tax free bonds

Senior citizens can also earn good income by investing in tax free bonds. These bonds are issued by the subsidiaries of the government. In which investment is done without risk. After a certain time, you will get the return, which is completely tax free.

National Savings Certificate

Those who invest in this scheme get tremendous benefit of compounding interest. That means you will also get a good return on your investment and you can also save tax through this. In this, the interest rate has been increased to 7 percent. This can be a better investment option for senior citizens.

ELSS Scheme

ELSS, also known as Tax Saving Mutual Fund Scheme, is an equity based mutual fund. 20 percent of which is invested in the form of debt and the remaining 80 percent is invested in the stock market. Along with good returns, it can also prove to be a good option for tax saving. Under Section 80C of the Income Tax Department, tax saving of up to Rs 1.50 lakh can be done in this.

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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.

The post Super Investment Plan For Senior Citizen! Top 5 Best Investment Schemes for Senior Citizens, know complete plan details first appeared on Rightsofemployees.com.