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Mihir

Mihir Tanna  |850 Answers  |Ask -

Tax Expert - Answered on Jan 28, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Jan 26, 2023Hindi
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Mihirji, which is the best investment option for senior citizens to park their money without being taxed?

Ans: Best investment options for senior citizens include Senior Citizen Savings Scheme (SCSS), pradhan mantri Yojana, post office schemes, bank FDs but in all cases interest income is taxable. For Interest earned from deposits with banks, post office or co-operative banks, deduction is allowed for a maximum interest income of up to ₹ 50,000.

Equity mutual fund (growth schemes) provides tax relief on maturity proceeds upto Rs 1 lacs if it held for more than 12 months but equity schemes comes with risk exposures as compare to other investment avenues.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Tejas

Tejas Chokshi  |126 Answers  |Ask -

Tax Expert - Answered on Jul 15, 2023

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Hi Sir. What would be best investment for Senior Citizen less than 75 years age, with good tax savings option. Please suggest.
Ans: When considering investment options for senior citizens under the age of 75 with good tax savings options, there are a few options worth considering:

Senior Citizen Savings Scheme (SCSS): This government-backed scheme is specifically designed for senior citizens and offers attractive interest rates. Investments in SCSS are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per financial year.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): This scheme is offered by Life Insurance Corporation of India (LIC) and provides regular pension income to senior citizens. It offers a higher interest rate than other fixed-income instruments. PMVVY offers tax benefits on the pension received, and the investment amount is eligible for tax deductions under Section 80C.

Tax-saving Fixed Deposits (FDs): Many banks offer tax-saving FDs with a lock-in period of five years. The interest earned is taxable, but the investment amount is eligible for tax deductions under Section 80C.

National Savings Certificates (NSC): NSCs are issued by the Indian government and offer a fixed interest rate. The interest accrued is eligible for tax deductions under Section 80C. However, the interest earned is taxable.

Tax-saving Mutual Funds (ELSS): Equity Linked Saving Schemes (ELSS) are diversified mutual funds that invest primarily in equities. They offer the potential for higher returns over the long term. ELSS investments are eligible for tax deductions under Section 80C, up to a maximum limit of Rs. 1.5 lakh per financial year. However, please note that ELSS investments are subject to market risks.

It is important to consider your risk appetite, financial goals, and investment horizon before making any investment decisions. I would recommend consulting with a financial advisor who can assess your specific circumstances and provide personalized investment advice based on your needs.

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Ramalingam

Ramalingam Kalirajan  |3744 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

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Which is the best MF now for Tax Gain Saving by Sr. Citizen
Ans: For senior citizens looking to invest in tax-saving mutual funds (Equity Linked Savings Schemes or ELSS), several factors need consideration, including risk tolerance, investment horizon, and financial goals. Since ELSS funds come with a lock-in period of three years and invest primarily in equity, it's essential to choose funds that align with your preferences and objectives.
Here are a few considerations and recommendations for senior citizens investing in ELSS:
1. Risk Tolerance: Evaluate your risk tolerance, as ELSS funds are equity-oriented and subject to market volatility. If you have a lower risk tolerance, consider balanced funds or debt-oriented funds with tax-saving benefits.
2. Investment Horizon: Determine your investment horizon and assess whether you can stay invested for the ELSS lock-in period of three years or longer.
3. Past Performance: Review the historical performance of ELSS funds, focusing on consistency and long-term returns. Look for funds with a track record of delivering competitive returns over various market cycles.
4. Fund Manager Expertise: Assess the expertise and track record of the fund manager managing the ELSS fund. A skilled and experienced fund manager can add value through strategic investment decisions.
5. Expense Ratio: Consider the expense ratio of the ELSS funds, as lower expenses can enhance your overall returns over time.
It's essential to conduct thorough research, consult with a financial advisor, and carefully evaluate your investment options before making any investment decisions. Additionally, consider your overall financial plan, including asset allocation, diversification, and risk management, to achieve your long-term financial goals.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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