Tax Saving for senior citizens

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Neelam Soneja (Querist)
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28 June 2011 what is the best option for senior citizen to invest which reduces the tax liability??
senior citizen having income around 6 lakhs rupees,
income if from FDRs, MF, Shares and Bonds.

sivasankar

sivasankar (Expert)
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29 June 2011 The best option is to invest in PPF because its risk free and also subject exemption in DTC also.You can invest upto 70000 and for the balance you can go for Mediclaim.This reply based on DTC provisions.

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Neelam Soneja

Neelam Soneja (Querist)
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29 June 2011 she has already invested in PPF Rs.70000.
Any other option???

sivasankar

sivasankar (Expert)
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29 June 2011 Try for investments in 80CCF 20000.Moreover sell the shares and MF after 1 year so to get exempted from CAPITAL GAINS.Since dividend is tax exempt choose dividend payment option for mutual funds instead of choosing dividend re-investment option or growth option.
You can change the option now also in consultation with the MF agent or fund house.
But change the option only for one year old mutual funds only.

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