Post job tax savings for senior citizen

Tax planning 343 views 1 replies

70 Points Joined March 2012

Example

Ram is working at a bank, and is about to retire. He will be 60 years of age.

Ram is getting 35 lakhs of onetime payment (gratuity and PF) by the bank and a yearly pension of Rs.300000

Now he wants to invest the same amount of 35 lakhs in such a way that the yearly tax is minimum.

His suggestion

Invest 35 lakhs in fixed deposit to earn 350000 per annum

So his total income will be 650000 and as per Ay 15-16 tax slab

And deduction of 80c =PF Rs.150000.

Tax on Rs.500000 will be 18540

So how can he save tax by any other means?????

Replies (1)

CA on Duty

104 Points Joined April 2015

For individual more options are not available to save tax.

U can get deduction U/s 80C, 80D, 80G, 80TTA.

Investing in PPF at this age is very bad idea bcoz of problem of liquidity in PPF account.

U can invest in Tax Saving FD with 5 years Lock in Period.

or u can consult with proper well educated financial adviser to do a finalcial planning.

Avoid equity investment as this age. Also dont block your amount for long term period say more than 5 years.

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