Retirement is a very tough phase – you have a very limited to zero income and your life depends on your retirement corpus. Because of this limited income issue, you end up making a lot of sacrifices with your current lifestyle – which you might or might not be okay with. In short, making your pension corpus work for you is quite tough but what makes it worse is the tax levied on it.
Any income is subject to TDS deduction if it exceeds a certain figure which is specified as a maximum for TDS-exemption. The same applies to every income irrespective of the age of investors. However, in case of senior citizens, the TDS exemption limit is Rs 50, 000 per annum On the other hand, this limit is capped at only Rs 10, 000 per year (as per the new interim budget, this Rs 10k per year limit would be raised to Rs 40k per year for regular citizens) for regular, non-senior citizens. Thus, any elderly planning to save money for their retirement would want to ensure zero tax deductions. Keeping that in mind, a senior citizen can invest in the following schemes.
Let’s we take a look on such senior citizen investment schemes you can invest in:
- Fixed Deposit
- Post-Office Term Deposit
- Mutual funds
- Stock market
- Life insurance schemes
- Pension yojana
Investment in these schemes entitle you with deductions under section 80C and you won’t have to pay TDS as long as your income is less than 50k. Even if TDS is deducted and you don’t qualify for tax deductions, you can claim the deducted amount while filing ITR. You may read more about here: http://paydayloansonlinel.com/investment/heres-how-investment-in-fds-may-simplify-your-retirement/