6 tax saving options for senior citizens in 2024

ZeeBiz WebTeam

Jul 17,2024

National Pension System (NPS)

A senior citizen can save up to Rs 1.50 lakh in a financial year on deposits under Section 80C. NPS subscribers with a Tier-I account are qualified for an additional benefit of Rs 50,000 on deposits. 

ELSS Mutual Funds

The equity mutual fund category is also known as tax saver mutual funds. Investments up to Rs 1.50 lakh in a financial year in an ELSS fund qualify for Section 80C deductions. 

Tax saving FD

Fixed deposit schemes that have a tenure of five years or more qualify for deductions under Section 80C. Almost all leading banks offer an extra interest rate to senior citizens. 

Senior Citizen Savings Scheme (SCSS)

This is a post office scheme where deposits up to Rs 1.50 lakh are tax-exempt under Section 80C of the Income Tax Act. In this scheme, senior citizens make a one-time investment 

Tax-free bonds

Central government and state government companies issue tax-free bonds to boost their infrastructure, housing, railways, and other sectors. Investments in these bonds are tax-exempt. 

National Savings Certificates

In NSC, one makes a one-time payment for a lock-in period of five years. Deposits up to Rs 1.50 lakh in a financial year qualify for tax benefits under Section 80C.

6 tax saving options for senior citizens in 2024