A recent census put the count of senior citizens in India at 10 crores- in support of this group of individuals who are 60 years of age or older, financial and health related benefits have been introduced. Starting with dedicated insurance plans, there are several financial perks to look forward to. Finance related benefits can be grouped into two categories, which have been listed below:
About Specialized Investment Plans for Senior Citizens
In this category of financial benefits, the following investment vehicles are the top picks:
Fixed deposits for senior citizens are provided by most banks as well as Non-Banking Financial Companies (NBFCs). The rate of interest offered on such schemes are quite high when compared to similar schemes for non-senior citizen investors. The maximum interest income is of the range of 8.20%.
Senior Citizens Savings Schemes are another viable option wherein investors can invest as much as INR 15 lakhs for a period of 5 years to earn annual interest of 8.3%. The interest is paid on a quarterly basis. This scheme is provided by banks and post offices.
Read: Tips to Boost your Savings for Retirement
About the Income Tax Benefits for Senior Citizens
There are two income/age slabs defined when it comes to tax benefits for individuals who are 60 years or older.
A maximum yearly income of INR 3 lakhs for senior citizens (age between 60 years and 80 years) is exempted from income tax.
Likewise, individuals who are 80 years or older are considered super senior citizens- for such individuals, the maximum exemption limit for income tax is set at INR 5 lakhs.
Moreover, under the Income Tax Act of India, specific Sections like 80 D, 80 DDB and 80TTB provide exclusive tax benefits to senior citizens on their income that can be utilized with the investment income or other financial aspects such as insurance.
Read: Get Complete Investing Guide
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.