What kind of tax benefits can senior citizens avail?

Mutual Funds
By investing in mutual funds, under Section 80C, one can be eligible for tax deductions up to Rs.1.5 lakh per year.

National Pension Scheme (NPS)

The National Pension Scheme can be availed by individuals between the ages of 18 and 65 years. Senior citizens can extend the tenure up to the attainment of 70 years of age as well. Under Section 80C, taxpayers are eligible for deductions up to Rs.1.50 lakh on the investment made towards NPS. Similarly, under Section 80CCD, individuals are also eligible for additional benefits up to Rs.50,000.

The investment made towards the NPS scheme can be directed towards equity bonds or debt bonds, or both depending on the individuals choice. Though NPS does not offer a steady rate, the scheme generates excellent returns and your investment can grow at a faster rate by orienting your NPS towards equity funds.

 

 

- Deepali Sen
There are specific tax advantages given by the Governement to senior citizens and various schemes are available for them. However, they are better advised to consult their chartered accountants for the same. 
- Mrunmay Das
80C - Mutual Funds Investments Upto Rs150000/- is exempted
80D - medical expenditure can be claimed upto 50000 if they have not taken any health insurance
80TTB - Interest from saving bank account can be allowed as deduction upto 50000 whereas it is 10000 for the non-senior citizen.
- Anil Bharadwaj

 

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