Know how you can Save Tax in your 60s

Learn about the Best Tax-Saving Schemes for Senior Citizens

Once you have crossed the age of 60, you enter into a new phase of your life. You are retired from your job and you will not be earning any more. In this phase, you need to plan for yourself. Even after retirement, you need to pay taxes every year. Hence, it is important to analyze the best tax-saving instruments that can help you create wealth and avail tax benefits. 

So, if you are also thinking to save tax, but do not know what is the right alternative? There are many questions that may bother you. In this article, we will tell you about tax-saving schemes for senior citizens that will help them in saving more. 

• Save tax with health insurance plan: For beginners, getting a health insurance plan will not only save your hard-earned money, but it can also save you from medical exigencies. You can opt for health insurance for senior citizens that are specially designed for people above the age of 60. Care Health Insurance offers Care Senior in which you can save tax upto  Rs.75,000on a premium paid as per Section 80D of the Income Tax Act 1961. 
• Senior Citizens Saving Scheme (SCSS): This scheme is mainly meant for Indians above the age of 60 years. This is an ideal choice for anyone who is looking for safety and regular income in terms of investments. The scheme is available through public and private banks of India and the India Post Offices. The tenure for this scheme is for 5 years; but, it can be extended for another three years.
• National Savings Certificate (NSC): This tax-saving scheme can be bought from the post office. The main aim of this scheme is to improve the habit of saving and investment among people. This scheme is mainly preferred by those who are thinking to expand their portfolio with the help of a fixed return instrument. The minimum amount required is Rs. 100 and there is no limit for maximum. 
• Bank fixed deposit: The bank pays 0.5% additional interest for senior citizens on fixed This  makes it an attractive tax-saving scheme. The bank deposit with five-year tenure is eligible for a tax benefit as per the Section 80C. There is a lock-in period of 5 years. 
• Employee Provident Fund (EPF): This is another investment contribution that helps you in securing savings. It is mainly applicable for working employees. The EPF is deducted from the monthly income and the employee’s contribution is entitled to a tax deduction as per the Section 80C. 
• New Pension Scheme: This scheme is great in terms of both tax planning and retirement planning. The investment in this scheme can be made through debt and equity market. New Pension Scheme is considered the best investment scheme that helps in maintaining living standard even after retirement.

 >> Also read The Common Medical Expenditures for Senior Citizen Parents

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Conclusion

Retirement means spending your life stress-free and having a great time with your family. You can invest in any of the tax-saving schemes that will help in lowering your tax burden every year.

There are many tax-saving schemes available in the market. The idea lies in opting for the right one that is ideal for you that will not only save your money but also helps you in making a profit. Therefore, it is advised to opt for the right one.

Disclaimer: The above information is for reference purposes only. The medical insurance tax exemption are subject to the rules and regulations of the Income Tax Act of India 1961.